Saying "they are in much better shape than most" might translate to, "We'll only tank 80% instead of 90%." Is that supposed to be good news?
It puzzles me as to why the cheerleeders on this board seem to think that AMP's future is bright because they are less-exposed to bad assets. Ignoring the bad asset issue, AMP's real growth seems fundamentally tied to an increasing base of clients with "after-expenses" money to invest. But, in case the cheerleaders haven't been affected (yet), the pool of clients with such resources has been shrinking lately. Banks will probably recover as the liquidity issues get resolved. But returning to a sustainable economic prosperity that will bring the real growth back to AMP might take a lot longer.
I think that the reason for the stock drop has less to do with bad assets, and more to do with a depressing long-term growth story.
BTW, I'm not a cheerleader for this stock. Just seems they have a good balance sheet while others in the financial services industry struggle. The Motley Fool singled AMP out for just such a thing -- a financial getting hammered through association only.
Their prospects may be another story, however. Thanks for your insights.