Goldilocks and Little Red Riding Hood have a lot in common…up to a point.
They were both curious little girls who meddled with ferocious forest animals, but they met very different ends.
From the earliest known versions of her tale, Goldilocks jumped out the window of the Three Bears’ house just in time (though stories differ on whether she made it home safely or was “never seen again”).
But Red Riding Hood wasn’t so lucky. In the original story, first printed in 1697, the wolf gobbles her up, and there’s no happy ending. (The children’s versions we read today have been softened to include the woodcutter who saves her and her grandmother.)
In other words, Goldilocks is a fairytale, while Red Riding Hood is more like a nightmare.
Up until now, that is.
There’s actually a darker version of Goldilocks where…furious that she’s eaten his food and broken his furniture… Papa Bear devours her at the end of the tale.
That’s the story I see on the horizon.
Though this market scenario is not here just yet, it’s not a pretty one. And like all good moral tales, it does make a useful and profitable point.
Industrial stocks, those companies that make things that hurt when you drop them on your foot, are better to buy during certain time periods than others. GE is a perfect example of an industrial stock. It operates through sectors such as aviation, power, additive manufacturing, lighting, transportation, and oil and gas, among others. While the company is set to officially exit from the Dow Jones Industrial average – for the first time in over a century – it remains a juggernaut in these sectors. GE is currently trading at $13 a share, which begs the question – should we buy the stock? According to D.R. in this live appearance on Varney & Co, it all depends on inflation. Click here to see his opinion on whether the company is a buy.
(Hint: It’s based on a little something he heard from Jack Welch in business school).