Many of the world’s finest companies are trading at prices that we have not seen for several years. I urge investors to take advantage of these opportunities while they last, suggests Jim Powell, editor of Global Changes & Opportunities Report.
For investors who are willing to accept higher risk, my top pick for aggressive investors for 2019 is General Electric (NYSE:GE). This is one of the worst-performing blue-chip stocks that we have seen in many years.
From a $31.60 high in November 2017, the stock is now selling for just $7.26 — a stomach-churning 77.0% plunge. Most of the slide was due to a series of poor business choices by the company’s former management. The stock market correction took GE down even further.
It is possible that GE will go lower. If so, I doubt that any additional decline will be very large. On the contrary, I believe the odds favor a turnaround for this 126-year-old company that has been shutting down or selling underperforming operations, showing poor managers the door, and refocusing its efforts on businesses where it remains competitive.
The most encouraging development at GE is its new CEO, Lawrence Culp, is dragging the company back from the mistakes of his predecessors. The turnaround will not happen quickly and probably not smoothly.
However, I feel strongly that long-term investors who take positions in GE at today’s low price will be very happy they did. It won’t be the first time that this 126-year old company stumbled badly, and was pronounced dead by Wall Street analysts, and then recovered.
In closing, I will say once again that the very best use of a stock market correction is to buy blue chips that are selling at bargain prices. That’s even more true when taking a position in a company like General Electric that was stumbling before the correction pushed its price even lower.
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