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What Will Happen To AIG?

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What Will Happen To AIG?

  QUESTION: What's going to happen to AIG? Is trading at a deep discount so, it's a good bargain, but what are the chances of coming back up? Is the banking market a good investment?

ANSWER: It is unknown what is going to happen with AIG.  Nearly 80% of the company is now held by the United States Government.  With the company selling assets over the coming months, I would suggest looking elsewhere for opportunities.  Depending upon your time horizon, the banking sector may be a good long term investment.  However, I would stick to a diversified strategy and not try and pick the next "hot" stock or "hot" sector.
___________________ Money Matters is provided by:

David Schauer, CFA, MSFA, CFP®
Financial Planner
Hanson McClain
E-mail questions to moneymatters@kovr.com

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