I haven't seen any discussion about shorting GE for a while on this board. I'm trying to decide on the timing for going short GE and was curious if any of you folks have an opinion. I'm feeling pretty confident that its overvalued at a PE of 30+ but I don't want to step into the path of the January effect. On the other hand, I believe GE has significant Asian exposure and I'm trying to decide if their calendar Q4 numbers will be affected or if it will take another quarter. My thanks in advance for your Foolish counsel regarding either shortability or timing of a short play.kschof
GE is 3.2 % weighting in S%P 500.Large flow of funds from yearend retirement plan contributions will occur in January. Index Funds will account for a substantial (?) portion of equity mutual fund contributions to closet indexers as well as straight index funds. Funds will invest in stocks as they are weighted in the index. All other things being equal, GE and other grossly overpriced issues which are heavily weighted in the indexes are probably better shorts after the cash bulge has hit.
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