The Deipnosophist

Where the science of investing becomes an art of living

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Location: Summerlin, Nevada, United States

A private investor for 20+ years, I manage private portfolios and write about investing. You can read my market musings on three different sites: 1) The Deipnosophist, dedicated to teaching the market's processes and mechanics; 2) Investment Poetry, a subscription site dedicated to real time investment recommendations; and 3) Seeking Alpha, a combination of the other two sites with a mix of reprints from this site and all-original content. See you here, there, or the other site!

28 May 2008

Not a pretty picture

American International/AIG just traded for $34.63, effectively matching its ~10 year low ($34.60) that occurred during the Long Term Capital Management problems. (September 1998.)

[click on chart to enlarge]

Although the shares could bounce off the ~$33-35 price level, such a bounce could prove ephemeral as selling pressure this resolute indicates Wall Street fears AIG could be another Bear Stearns/BSC. All in all, not good, not good at all.

Of course, we all would be remiss if we fail to acknowledge that Wall Street gets things wrong quite often -- which helps create opportunities for investors of all stripes.

Full Disclosure: Not long American International/AIG
-- David M Gordon / The Deipnosophist

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