Hi Lou,

I wanted to know your thoughts on buying Stock in AIG.

Kuldeep

Hi Kuldeep,

I covered American International Group Inc., AIG NYSE, back on November 24, 2008 and even though the stock has moved up from those lows I still think that it’s a very high risk proposition.

AIG may be a trade, but it is not an investment

AIG may be a trade but it is not an investment. The volatility in the markets favors trading for income but that means being actively on the switch. The MACD has turned up which suggests a change in momentum and perhaps further upside.

Keep in mind that AIG has received over $150B in support from the U.S. Government and is actively selling off assets in an effort to pay off those loans in a three year period.

The stock is still in an aggressive down trend and it may have clawed its way higher over the last two weeks but it is not without extreme risk and that should come into your evaluation.

Make it a great day and Happy Capitalism!