- 1). Determine your level of risk tolerance for holding the stock. Even if the federal government and the federal reserve have demonstrated a willingness to backstop major insurance companies like AIG, that's no guarantee the company's stock price will retain its value in the case of another crisis. AIG's individual situation was greatly improved by the government bailout, but the stock price has yet to recover to its pre-crisis highs.
- 2). Ensure that your portfolio is well-diversified or that you have a sensible trading strategy to ensure you limit your potential downside exposure. In general, insurance companies track financial and real estate firms. It's best to limit the exposure of your portfolio to those and similar companies to protect your savings from industry-wide downturns.
- 3). Purchase AIG stock (symbol: AIG) through a brokerage account when you're prepared to take the risk. Even if you purchase only buy one share, you'll gain access to shareholder reports and other information that will assist you in making more informed decisions about your holdings.
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