The AIG Effect
I am convinced that much of today's action, like yesterday's, has to do with this American International Group (AIG) deal and the selling by funds -- mostly the S&P 500 funds. These funds have to add to AIG, so they came in and blasted out stock when they found out that the new weightings are even bigger than they thought.
I think the selling was mechanical because the indicators I look at -- gold, the CurrencyShares Euro Trust (FXE) and Banco Santander (SAN) -- all tell me not to sweat the European issues here. Now, it is possible that the Supreme Court in Germany can keep secrets and all of these indicators are wrong....125 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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