JP Morgan’s (JPM) trading desk issued some notes to brokers this morning, of which STWT has obtained a copy, about General Electric (GE) and the general shift to large-cap names. As JP’s memo points out, Russell 3000 small-cap stocks have declined 1.5% since August 31, while large-caps have risen 7.5%. But, “This performance gap still has much room to narrow into year-end, and GE is in position to lead that closure.” The dollar’s decline, and the carry trade’s influence, will benefit large multinationals like GE, while the stock is much more of a safe pick for fund managers wishing to join the large-cap rally, JP believes. GE shares today are off 40 cents, or 2.4%, at $15.69.
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