The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Isaac Pino and analyst Blake Bos discuss topics around the investing world.
Potential investors in large manufacturing companies need to have a solid understanding of the macroeconomic environment. Heavy-equipment manufacturers like Caterpillar can fall prey to the increasing volatile global economy, and therefore management invests significant resources in forecasting demand and growth prospects. Recently, Caterpillar lowered guidance looking ahead to 2015, sparking investors' worst fears that another recession could be on the way. Those fears could be misleading, however, and divert attention away from the companies with a defensive portfolio and sound fundamentals. Isaac believes General Electric is one of those companies and outlines his case in today's video.
For GE, the recent financial crisis struck a blow, but management took advantage of the market's dip to make strategic bets in energy, health care, and transportation. If you're a GE investor, you need to understand how these bets could propel GE's stock even in a down economy. At the same time, you need to be aware of the threats to GE's portfolio. To help, we're offering comprehensive coverage for investors in a premium report on General Electric, in which our industrials analyst breaks down GE's multiple businesses. You'll find reasons to buy or sell GE, and you'll receive continuing updates as major events unfold during the year. To get started, click here now.