Gyrations of the week show the importance of a diversified portfolio

Hi:

 Well, with Bear Stearns selling for a bargain-basement $2.00 a share, and the Feds lowering the prime rate in the US by a full point this week, a couple of things become clear. 

 With the market doing its roller-coaster up 300 points, down 400 points and the foreign overnight markets not faring much better, the message is: be diversified.  Asset allocation is paramount, especially if you are retired and don't have ways to earn more income.  Real estate, bonds, T-bills, and shares in a variety of industries have to be the way to go. 

  The poor folks working at Bear Stearns and the other brokerages are looking pretty sad this week.  Apparently some folks have all their assets in their 401K's in their company stock, e.g. Citi.   Look around.  Who knows what industry will be hit next, but at least be diversified.

  I have faith though, that this too will pass.  The Canadian re organizers of the ABCP mess seem to have pulled through, although final steps are still ahead.  Whatever happens, a positive attitude does help.

 M.