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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?


To: Investor2 who wrote (3729)3/17/2008 6:51:31 AM
From: Boca_PETE  Respond to of 10065
 
I2,

The bad news is that this is one case where holding a general index fund such as S&P500 and Total Stock Market assures the investor of a hit.

The good news is the huge diversification of an index fund assures the hit will be minor.

I would think that computing a weighted average of one's index holdings using a .93% loss for the S&P500 fund, and, a .59% loss for the Total Stock Market Index Fund would result in a reasonable estimate of the impact of the Bear Stearn implosion on one's portfolio.

At least it appears that the Bear Stearns liability and counter-party obligations will be honored by JPM Chase.

Sure hope we don't see another major collapse for a long time. It sure leaves one wondering about where the next losses will rear their ugly heads.

P