few lines below you could not help yourself and had to write : WATCH and LEARN .... just grove it on your tomb stone, Wall-i :)))))
I am all in AIG for few months....and #$%$ roaches like you cannot change it...and I will stay in AIG untill it hits 1,5x its book value...as AIG was used to be traded 2x book value. I like to follow old paterns of evaluation, not sayingsfor simpletons like sell in May... All insurance companies are now hot stuff from the perspective of couple of years....20-30% pps grow annualy for at least half a decade....
Most exiting is the fact, that book value will keep on growing as well.. So I am not looking for pps of 100...but somewhere in between 130-140...and I do not thing we need to wait necessarily whole five years for this... anyway, this is not a recommendation for you wall-i, stick firmly to your shorting strategy... ;-)
The market is making new highs on the backs of fewer and fewer stocks. The one-month daily average of stocks hitting 52-week highs is currently about 26. One year ago, that number was about 101. In other words, we've gone from 1 out 5 stocks in the S&P 500 hitting highs to just 1 out of every 19.
"If you look at the breadth, we've seen a pretty amazing amount of deterioration just since last May," said Mark Newton, chief technical analyst at Greywolf Execution Partners. "It's dramatically down from what we've seen over the last year. And, that is a concern."
Although Newton doesn't see a reason to sell stocks right away, he sees the potential for a bit of a retracement in the coming months. The markets are "the most overbought we've been since 2007," he said. "We could have a pullback between the months of July and September/October. That historically is a seasonal time of weakness."
Some sectors may have seen some improvement recently, but the markets may not be out of the woods just yet.
Sentiment: Strong Sell
It's not just that I disagree with our pallindromed friend. There's something repugnant about anyone who hopes for companies and people to fail, so he can profit- or worse, turn "I told you so" into his mantra. There is a place for shorts, when a company is cooking its books, lying to its investors, or even when there's a genuine bubble. But I don't believe that is the case here- not with the kind of squeaky clean practices that come with sifi scrutiny. You can argue too, that the whole market is at least at the high end of reasonable valuation. But at 20-25% discount to book, that's not AIG.
Not as long as earnings are positive and interest rates remain low and inflation does not go above 2.2%. Any dip will be bought and profitable for the buyers until that happens. I am still Bullish and believe me you do not want to be on the other side of my trades over the long term. I go short but you are making a mistake if you short here as there is a flight to quality value stocks going on and the insurance,financials and energy are all performing and will perform the remainder of this year. You have been advised . I expect you do not take advice well so at least protect your family money so they don't say bad things about your lack of knowledge in the market and question your intellect even more than they do now. This is a blood game be very careful.
Sentiment: Strong Buy
One more chance to get out at these levels, don't you see it's all manipulated. You should consider yourself lucky to get out at little higher price than yesterday's price.
Sentiment: Strong Sell