[American Thinker] If your hackles are not yet up concerning the outlook for highly indebted multinational companies such as GE in a possible looming crisis of 2018, they ought to be. From September 2008 until recently, we operated in a new world without traditional controls, prepared to believe everything and happy to own almost anything. Skeptics were mocked, as markets rocked.
However, in recent months, benchmark interest rates in the United States ‐ the largest market in the world ‐ are trending upward after ten years at historic low levels. As interest rates rise, most asset values will fall. Declining asset values are especially worrying for complex borrowers like GE.
Now, investors are, again, agonizing, trying to assess how rising interest rates will affect the values of companies. It is no wonder that GE and its stock price should be back in the spotlight.
Awaiting Crucial GE Details
GE's comprehensive annual report for 2017 will emerge soon. Meanwhile, selling pressures have accentuated following the disappointing fourth quarter 2017 "earnings call" on January 24, 2018. |