Never Put Your Retirement Hopes In A Company's Stock

www.wsj.com

General Electric’s downward spiral has wiped out roughly $140bn in stock-market wealth in the past year, including retirement hopes of former employees who, like many investors, believed the company was invincible. Similar to the downfall impact of Enron, Lehman Brothers, General Motors, GE has lost $480bn in value since 2000. 

For the company - whose stock is 43% owned non-institutional investors like you and me, is now looking to make a late turnaround to strengthen its books and future outlook, has already caused economic turmoil for its retired employees, some of whom are now looking for new employment after 40 years at GE, due to a sharp decline in their pension value as a result of the company's stock demise. With more than 600,000 people dependent on GE's pension and 71.4% of assets needed to cover its pension liabilities, GE is one of the worst-funded large corporate pension plans in the U.S., according to a recent report by Milliman Inc.

Companies mentioned: GE -20% YTD, GM -7% YTD

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