GE and other thoughts

Holiday greetings to all! yes I've followed up more on GE and there's good and bad! Being a conglomerate has its benefits as they have refocused their business lines into energy and infrastructure which lends itself well to developing countries. Its GE Money division is a large US consumer credit division that is exposed to the coming credit default of many average American consumers. My feeling on this is there might be a better time to buy this conglomerate even though Jeffrey Immelt has swore up and down that they have a triple A rating on their corporate debt. Immelt even suggested at their latest corporate presentation that if their consumer banking division wasn't meeting expectations, that they would sell it. Conglomerates often sell at discounts to a sum of the parts valuation and I suspect that GE might in future suffer from this due to its extensive banking operations. This would represent a good arbitrage situation as I'm quite optimistic about its other operating divisions.

In terms of KO or MO, they're both trading at their highs for the year. I have no real preference. Are we expecting them to go higher with the expected volatility of the markets? Cash might be better during expected volatility either to buy more during dips or to sell positions at tops.