canuckify

GE: Betting on a Global Growth Story

Just a question about the "high growth hungry companies" recommended by William Taylor... these companies also have a high PE. What happens when they report in two weeks that their customers couldn't get credit, or delayed (cancelled) their purchases. I guarantee that GE wasn't the only company feeling the credit pinch. You can bet that if they felt it... it was felt all the way down the food chain. Yeah, I know.. someone's gonna point out the financial exposure that GE has. But EVERYONE either has to finance their receivables, or their CEO has heard the news (or more) that all of us had This is probably more analogous to right after 9//11 when companies pulled back on spending until they fully understood the scope of the problem.

In the week ahead, we will find out who was holding Wamu paper and will have to take further writedowns -- eroding confidence.

In this crazy environment, at the margin, most people are going to retrench and go high up the quality scale. The more uncertain, I firmly believe that this pays into GE's hand.