Geithner has dropped one of the biggest bombshells in the market that I've seen in a long time. Ever since his speech a little over a week ago, the market has been dropping like there's no tomorrow. We seem to be getting a little detail everyday about what this bank plan will include, but until Geithner finally comes out and gives us a full detailed picture, the market is going to keep going down. The problem was, is and will be that we don't know the liabilities that some of these financial institutions have. Without knowing what the liabilities are, it has become too risky to invest in these stocks. But at last, a little bit of optimism, at least we know eventually he has to come out and give us the full plan. When he does, stock prices will go back up.
I know I recommended GE and as of late and it hasn't been preforming well, but I still maintain that the company is in an excellent position to preform well in the long run. The recent downturn in GE has been due to a lack of knowledge on what liabilities GE's capital has and what actions the government will take to value the liabilities.
Keep your heads up folks, let's hope Geithner can get his act together.
*As a side note, I added Altria to my portfolio today. *
Posts
No comments:
Post a Comment