Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

General Motors Company (GM) & American International Group, Inc. (AIG): Why These 2 Bailout Stocks Are Up Today

U.S. stocks opened up this morning, with the S&P 500 and the narrower, price-weighted Dow Jones Industrial Average (INDEXDJX:.DJI) gaining 0.24% and 0.15%, respectively, at 10:05 a.m. EDT.

2 bailout babies mature
Call it a comeback! After yesterday’s market close, S&P Dow Jones Indices announced that it will add automaker General Motors Company (NYSE:GM) to the S&P 500 and the megacap S&P 100 index after Thursday’s close. GM will replace H.J. Heinz Company (NYSE:HNZ), which is being acquired by a group that includes Berkshire Hathaway. The index provider will also add another bailout stock, insurer American International Group, Inc. (NYSE:AIG), to the S&P 100. This is a big deal, particularly for General Motors Company (NYSE:GM) — $1.3 trillion in assets are indexed on the S&P 500. Little wonder the stock is up 1.8% this morning.

General Motors Company (NYSE:GM)

While American International Group, Inc. (NYSE:AIG)’s shares traded on the New York Stock Exchange throughout the crisis, General Motors Company (NYSE:GM)’s were de-listed after the company declared bankruptcy in June 2009. In November 2010, the company offered new shares to the public in one of the largest IPOs in U.S. history. However, the stock is roughly flat since then — in a roaring bull market:

General Motors Company (GM) & American International Group, Inc. (AIG): Why These 2 Bailout Stocks Are Up TodayGM Total Return Price data by YCharts.

Worse yet, investors have had to endure substantial downside swings without the sort of upside compensation that American International Group, Inc. (NYSE:AIG) shareholders have enjoyed. Indeed, AIG, has absolutely demolished the S&P 500 since the latter put in its low on March 9, 2009:

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.