The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.NEW YORK ( Trefis) -- General Electric ( GE) has very often been regarded as a bellwether for American industrial and transportation because of its size and presence in various segments of these industries. This belief has been further strengthened by the correlation between its stock and GDP growth for the U.S. GE's stock had been a good leading indicator of the financial crisis of 2008 and has traded between $10 and $20 since its market low of March, 2009. GE has a huge presence in emerging markets and is earning in excess of 60% of its revenues from outside the U.S. As a result, we expect that over time it will start to reflect the growth of global economy rather than just the U.S. So how will the emerging trends in the global economy impact GE?
It has also chalked out a strategy which looks at the South East Asian region with Thailand as its hub. The company has seen this strategy pay dividends as a result and recorded 30% sales growth in Thailand this past year. This trend is expected to continue well in the future as well. One example is the the commercial aviation business that is expected to grow at a very rapid pace in these countries. The sovereign debt crisis in Europe is a major source of concern for GE and will have a sizable negative impact on the company. Demand in Europe has been soft for a number of quarters now and has more or less negated the gains the company expects from the economic recovery in Western Europe. The sectors that have been particularly hard hit are health care and aviation. The company is reducing its capacity in these sectors to address this decline. Click here to find out how a company's products impact its stock price at Trefis. Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.