Tuesday, May 20, 2008

GE stop triggered

My stop on GE triggered today at 31.79 and I sold the entire amount. It closed at 31.72. It ends as an 8.5% loss for me and could have been a lot worse. I think the credit crisis (GE Capital) is effecting them a lot more than anyone is letting be known. This was something I didn't think through when I invested in it last year as a hedge against inflation. I now have 6.7% in cash to figure out what to do with. I don't have any solid ideas, but I may make another 1% purchase of EIX. I tried to make this a few weeks ago, but didn't realize that my cash had gone into the USG purchase.

As for GE, I do think it will recover, I'm just not willing to take any more chances with it. Anyone involved in credit, that hasn't corrected is suspect at this point.

Over all, my account has pulled back a little bit from the most recent gain, but it is holding most of it pretty well. The GE loss is hopefully just a footnote since it wasn't a big holding.

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