Summary
Some have said that the best defense is a strong offense.
Those bullish on the future outcome of General Electric’s turnaround prospects certainly need to seek out defensive strategies in the current environment.
Earnings forecasts suggest management's targets are under pressure and this is leading to continued declines in share prices.
My options strategies continue to ‘pay the piper’ while traditional buy-and-holds offer little more than panic and anxiety for those holding GE.
As a founding member of the Dow Jones industrials, it is clear that General Electric (GE) is one of the most iconic organizations America’s corporate history. But, in recent years, the company has faced many headwinds. Some have been self-imposed, and some have been dictated by the changing dynamics of the financial market.
The victims of those bearish trends have been the GE’s most loyal shareholders, as the stock has lost 62.6% since July 2016. Furthermore, the benefit of dividends has been limited in its mitigatory influences, as the company has already been forced to capitulate in recognition of the fact that prior managerial strategies have left General Electric in an overtly vulnerable position.
