What Bear Stearns' Meltdown Means To You
Think the Bear Stearns meltdown isn't affecting you? You might want to check your investments before you answer.
Large mutual funds commonly found in 401(k) plans have invested hundreds of millions in the battered bank, which is being purchased by JPMorgan Chase for $2 a share -- a fraction of its price last week.
As Bear Stearns stock plunged and the financial market shuddered, these funds also saw declines.
"I'm sure there are people who don't realize how badly they're impacted indirectly," said James J. Holtzman, a financial planner with Legend Financial Advisors in Pittsburgh.
"Everybody's taking a hit today," he said. "It's not going to be a pretty day."
The good news for many investors is that most mutual funds that do hold Bear Stearns count the company's shares as only a miniscule portion of their total holdings.
Read more here.
Read more coverage of Bear Sterns' collapse and the financial fallout here.
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ABC News | ALICE GOMSTYN | March 17, 2008 09:07 PM