Do you think the Blue Chips are going lower?
I've been eyeing GE and Coca Cola. When will they be value buys?
Answers
2830 points
Oldman answered 2 years ago …
EthanR recently answered a similar question, and I agree: stocks will continue to slide, with transient "bear market rallies" There has been a lot of discussion of GE - as a "value" play due to its involvement in water and energy systems...but the overhang of its financial component has made a lot of people wary. I don't think it will cut its dividend, but it may slide to below 2%. I don;t hold or have an interest in KO; it's a franchise, and it may do well relative to others, such as YUM, etc. But 5 years from now, will overseas consumers still want U.S. branded stuff, pushed by media, when they see their economies affected by the economic fallout of the U.S.-sponsored sub-prime and leverage inflation?
I'm not a tader, so my perspective is I'd rather carry companies that actually produce or transport commodities, vs those that flog fluff.
Disclosure: I hold GE, but not KO
4107 points
MNSL answered 2 years ago …
I think still some blue chips stocks are over valued through out the world. These blue chips will go down further. All growth companies going to hit hard this time and value stocks will outperform market in next 12 months. It is better to invest in undervalued, steeply discounted and neglected stocks now.
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4087 points
EthanR answered 2 years ago …
Dragn, right now, in my opinion, GE is a screaming long term buy, and KO is not far behind. But know that both stocks are very closely tied to the overall performance of the DOW. See my article in Tycoon Report next Thursday for buying DOW stocks when they are cheap. In the interest of fairness, let me disclose that I do own a little bit of GE at a higher level. I do not own KO (except sometimes in my refrigerator!)
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musti answered 2 years ago …
How could the DOW go down without the blue chips going down as well? Funny - just as Ethan and Oldman, though I could in no way compare with them - I hold GE as well but not KO. Probably, I should have sold GE earlier since it has brought me a substantial loss. But now it is too late since I do not believe it will hit rock bottom, it should have enough substance.
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