originally posted Jun 20, 2018
General Electric will drop out of the Dow Jones Industrial Average (aka “the Dow”) next week. GE was an original member of the Dow since the 30 stock index was established in 1907. Why is it dropping out? GE is no longer a representative company of the US Economy. Its stock has dropped 50% in the past year. GE has not stayed competitive in the world’s economy.
Why is this important? Because you need to be careful about owning single stocks and not keeping an eye on the companys you and your family own. We’ve met with lots of families that have owned certain company stocks for generations. Many times the philosophy has been “XYZ Co. stock was good enough for Grandpa…it’s good enough for me.” Make sure you get a second opinion of your and your families investment holdings. You may be holding the next GE. We can help.