AIG No Longer a Leader with Followers Among S&P 500 Stocks

AIG is still everywhere. The company still employs 90,000 plus employees and still offers insurance/retirement services to people all across the world. However, from a stock market perspective, AIG is not displaying leadership among the S&P 500 index, a composite of 500 large cap heavily traded companies. Do investors still have a very bad taste in their mouth? Time is usually an integral part of the investing healing process. But is this time different?

Today, AIG’s stock is up $1.57, or 4%, trading at $39.04 per share on news of an exit strategy from government ownership. Investors are cheering the stock higher, meanwhile the S&P 500 index is practically flat at 1144. If AIG was a true component leader, then the remainder of the composite would follow suit. However, AIG is not lifting all other boats today. AIG is lacking the leadership to rally the remaining stock troops on the S&P 500, quite a difference from the days when AIG was a $200 Billion company just a few years ago. Does such a trend mean a lack of faith still remains in the financial system? Has justice truly been served to the golden parachute executives who walked and left thousands unemployed?

Here’s the AIG 6-month chart:

As time is the healing process in any economic recovery, financial stocks like AIG that were contributors the Great Crash still present a cloudy future to investors. Meanwhile, look elsewhere, recent Wall St. Cheat Sheet Premium pick Chipotle Mexican Grill (CMG) is up over 20% and our September pick is already up over 15%. Click here to see what it is.

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