GE drops

GE took a big drop this morning after announcing an earnings of 44 cents a share, seven cents short of expectations (does some quick math 14% below expectations). The share price dropped 12%. I'm still holding it and it did drag my account down significantly, but I'm not willing to sell in fear. The whole economy is taking hits and it's no surprise that companies are going to report lower earnings. For me it's just a matter of where to keep my money and during tough financial times it seems to be either big chip stocks or commodities like gold (GLD) and silver (SLV). Since those are at record highs and I already took a health profit I'm sticking with the big cap stocks. At least for now. One thing I have noticed, that after big drops like this stocks usually come back pretty quicly the next day so maybe I'll buy more!

I was already up 5% since I purchased it last year so now I'm down 7% on GE. Not a bad number for me during a sketchy economy.

They say this is the biggest drop since 10/19/1987, but if you look at this chart it doesn't even register.

My overall account is at -1.4% for the year now when it was up 2% a week ago. It's always a wild ride, hang on and don't be afraid. I was down 10% for the year at one point in February I think.