Boston, MA 02/12/2014 (wallstreetpr) – Investors often choose blue chip companies such as General Electric Company (NYSE:GE), which are more reliable, and stable. With these types of stocks, investors are assured of good returns on investment and regular dividends. However, if there is one thing that the financial crisis of 2008 proved to all investors, it is that even the seemingly untouchable and reliable stocks such as GE are not safe from hits. Without the US government’s intervention, it is doubtable whether GE would still be in existence today. The US government came up with a package, a stimulus package, which rescued companies such as GE from total collapse.
In 2014 and beyond, investors need to exercise some modicum of caution in order not to lose their hard-earned cash and wealth. Some of the reasons issued regarding the need for investors to be cautious with companies such as General Electric Company (NYSE:GE) are that the global economy is still as lopsided as it ever was. If General Electric is to grow its revenues successfully in 2014 and beyond, it needs the support of the rest of the world. GE depends on the global economy, and if this expands, then the company is assured of better revenues and higher profits in 2014 and beyond. GE is a properly diversified company, and needs all divisions to be profitable.
It is hard to tell accurately how a company such as General Electric Company (NYSE:GE) will perform. You can never say that it will fail or disappoint because it has too many divisions as a result of an intense diversification exercise. Similarly, you cannot say that GE will always bring in profits and issue dividends to shareholders every time it releases its latest financial results. Currently, the US economy seems to be doing well and this augurs well for General Electric. However, the fact that the Chinese and European markets still demonstrate a measure of weakness will not augur well for General Electric either in 2014 or beyond this year.
General Electric Company (NYSE:GE) has a banking arm aptly named GE Capital, whose future is rather unclear leading to questions regarding the viability and wisdom of investing in this stock. The company now intends to put up its banking arm to an IPO that is expected top be the largest since Facebook Inc’s IPO of 2012. As it happened with Facebook’s IPO, it is difficult to say with certainty how this one involving GE Capital will proceed. Thus far, the company has taken all the right and suitable decisions regarding its banking unit, but it is difficult to say certainly that it will continue on the same path prior to and after the IPO that is set for later this year,
In summary, investors are advised to be a bit cautious regarding General Electric Company (NYSE:GE). If you invest in this company, you will not be burned, but with all the activities that are set for this year, you should not expect the same benefits that you would have enjoyed without all the events that are coming up in 2014.
