Skip to main content

General Electric: Signaling Economic Turmoil

The Dow Jones Industrial Average originally consisted of 12 companies. 

Of those original companies back in 1896, only General Electric remains, and during the most recent recessionary periods it has proven reliably representative of trend. 

During the collapse of the dot-com bubble, General Electric fell from roughly $60 per share in September of 2000 to nearly $20 per share in February of 2003, a whole 66-percent decline over 29 months. 

Over the ensuing 55 months, General Electric shares would rebound over the 40-dollar level, only to tumble all the way down to $7 per share by March of 2009, as the world experienced the greatest financial meltdown since the Great Depression. 

Since that low, General Electric has endured to again eclipse the $30-per-share mark, closing at $32.88 on July 15, 2016. 

Since then, however, the stock has resumed its seemingly-secular downward trajectory to close at $17.45 per share at the end of 2017, completing a full 47-percent decline just before the new year. 

With the lauded "January Effect" looming large, many investors and commentators recommend an allocation toward General Electric to take advantage of the historical trend. 

However, the technical movements of stocks are rendered predictable only by their estimations against relatively normal, predictable conditions. 

Should this downward movement instead indicate a broader trend for the greater economy, this may in fact portend something far more serious than any opportunity to buy the dip. 

If immediate history is any indicator, a major economic recession is upon us.

Comments

Popular posts from this blog

America's Civil War: Not "Civil" and Not About Slavery

Virtually the entirety of South and Central America, as well as European powers Britain, Spain and France, peacefully abolished slavery — without war — in the first sixty years of the nineteenth century. 

Why, then, did the United States enter into a bloody war that cost over half of the nation’s wealth, at least 800,000 lives and many hundreds of thousands more in casualties? 

The answer: the War Between the States was not about slavery. 

It was a war of invasion to further empower the central government and to reject state sovereignty, nullification of unconstitutional laws, and the states’ rights to secession. 

It was a war that would cripple the South and witness the federal debt skyrocket from $65 million in 1860 to $2.7 billion in 1865, whose annual interest alone would prove twice as expensive as the entire federal budget from 1860.

It was a war that would blur the lines and jurisdictions between sovereign states, that would indiscriminately sacrifice the founding principles etched …

The Evils of Facebook in the War Against Reason

Facebook is one of the greatest frauds whereby thoughtless friends share or tacitly embrace ideas which, in doing so, adds personal, relatable flair to messages being distributed from largely unknown reporters. 

In effect, these friends then subject a wider community to the thought that since their friends are supportive of such ideas, then they ought to carry some merit or authenticity. 

Facebook commits a great disservice to communication, serving primarily to subject meaningful dialogue to inherently-binary measures of laudability or contemptibility. 

Whereas scientific evaluation serves to extract emotion, Facebook serves to embolden the fallacy-ridden supposition that fact follows fanfare, that truth trails trendiness, and that democratic participation (by way of “likes” or “shares”) can reliably support truth or sustainably produce virtue.

What's more, Facebook and other social media sites tend also to further the fallacy that the last breath, or more precisely the final keystro…

One of Every Three American Adults is a Criminal

Earlier today, the Wall Street Journal posted an article on the growing epidemic of criminal records. The article reports that nearly one out of every three American adults has a criminal record — a statistic corroborated by the Federal Bureau of Investigation, whose records show 77.7 million individuals on file in the organization's master criminal database. Is this an indication of a society which is becoming more violent and criminal, or of one which is becoming ever-populated with needless and overreaching laws, ordinances, and regulations? In a country whose growing majority depends upon government for salary or entitlements, this is indeed the mechanism through which the dependency is enabled. Some are apparently more than willing to surrender increments of freedom for the promise of free stuff.    

Along with the extensive and pervasive development of laws in the United States, their execution has become more vile and horrid; and the experience of police brutality, along wit…