With the recent and shocking news of the collapse of Bear Stearns, one of the largest financial institutions in the country, we are once again reminded that no matter the size of a company, everything can be lost. From a peak price of $171.52 per share in January 2007, Bear Stearns managed to lose 98.8% of its peak market value of $20.2 billion in less than 15 months – selling at $2 per share!!!
So what should we take from the news of Bear Stearns collapse?
Make sure you have a balanced approach to your portfolio! Take your age from 100, that is the portion you want into growth investements, the rest (or your age) should be in safe investments. Please log onto www.johnnavin.com with any questions or thoughts. With your risky investments, please make sure you are difversified. Don't put all your money into company stock, or the company 401k plan, spread out your risk.
Hope you all had a great Easter and look forward to our next conversation.
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