General Electric: Four reasons to buy

"Number one, there is no stock in the United States that better represents the national economy -- and stock market -- than GE. As the U.S. economy recovers, GE will participate. (And, remember, the market recovers long before the economy does.)

"Two, when institutional money comes back into the market, it buys the biggest, most liquid companies first. GE fits the bill. It is a natural target for big money, especially the powerful, new sovereign wealth funds.

"Three, this stock is dirt cheap. I realize there are problems in the company's financial services division. But come on, GE now is selling for six times earnings, two-thirds of sales, and at book value. Don't tell me GE isn't worth a lot more than its (understated) liquidation value.

"Four, our advisory service is about high yields and GE has the highest in the Dow Jones Industrial Average. Based on the December dividend, GE is yielding 10.2%. This is the ultimate dog of the Dow!

"Bear in mind, the dividend may be cut in upcoming quarters. But even if the dividend is halved, the yield still is attractive. And the capital gains potential from here is exceptional."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.