Needless to say, I couldn’t pull the trigger today on GE (GE: web, chart, Y!)  or Ford (F: chart, web, Y!).  As I’ve mentioned before, I think both stocks are worth looking at for long-term runs, but I don’t think enough confidence has returned to the stock market to buy any equities, but I’m still trying to play with gold.

It’s tough to tell where the ceiling will be put in place on GLD, but I think money will continue flowing into the precious metal as a safe haven until the confidence returns, both to the markets and to government financial policy.

Unfortunately I think it will be a while before confidence returns to either one.

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Investing Ford, GE, GLD, gold

I mentioned back in July that I started picking up shares of General Electric (GE: web, chart, Y!) after they reported that they sold off mortgage and credit card assets.

Well, since then the stock has dropped more than 60%, which doesn’t boost the portfolio at all, but it does fit right in with every other stock I own.

Today the stock dropped below $10 per share, its lowest levels since 1995.

Unfortunately, even after selling off a significant portion of their mortgage and credit assets, they company is still left with significant open exposure to the financial sector through GE Capital.

Along the same reasoning behind picking up some shares of Ford, I’m wondering if I should average down on GE.  At $10 per share, it wouldn’t take much to bring down my average significantly.

The one big unknown is the leadership in Jeffery Immelt.  I applaud him for denying a raise and a bonus, although I wonder if it’s only because he knew he’d get crucified by shareholders if he took so much as a penny for a raise.

Corner Office Comments

At this point in time I think it’s wise to average down.  GE is one of those conglomerates that, while beaten down in todays market environment, still has good long-term prospects.

I see the company as having lost direction due to distractions from their financial segment.  Unfortunatley I think it’s too late to turn the ship around in time to really beat the bottom, so it may just be wise to ride out the waves until things start looking up.

I will pick up cheap shares below $10 to get my average cost down, and I think I’ll have plenty of opportunity to do so.  The Street’s lack of confidence in our government policy is going to take some time to rebuild, and the more Obama tries to help, the longer that process will take.

Investing GE, General Electric, Jeffery Immelt

After doing some extensive research, I broke down and started buying up shares of General Electric (GE: web, chart, Y!) in my retirement account last week.  After several trades, I’m averaged in at $26.77 and will continue to evaluate the value movement for the next several months.

Last Friday, the company reported earnings in-line with market estimates, which in this market environment is reassuring.  Jeffrey Immelt also reported that the company is selling off its Japanese consumer finance unit to Shinsei Bank, a midsize Japanese bank for $5.4 billion, including $1.7 billion mortgage and credit card assets.  GE, however, still gets stuck with a $233.0 million charge for the sale after taxes.

Of course, everyone wants to beat estimates, but when the overall trend is down, just meeting expectations can be a sign of strength, if not resilience.

I’m fairly content with the position GE is in right now.  They’re very diverse, so no one sector is really going to back the company into a corner.  I’m pleased to see they’re selling off mortgage and credit card assets, as I feel these sectors will feel some pain for quite some time.

Investing GE, Investing