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Fear of insolvency is making the financial institution attractive choice for investment
Sam Adelton
Mar. 13, 2008

Bear Stearns Cos. Plummeted on Thursday as concerns about the bank's solvency rattled its shares The shares fell close to 14% again. The climactic fear in the financial institutions is typical o the end of a bear market at least on an intermediate term basis.

Whispers that the New York-based bank is in trouble dragged the company's stock to its cheapest price since just after the September 11th terrorist attacks.

In the market place, there is common knowledge; it takes the third attempt to pierce through a support. The financial institutions have fallen into their knees for the second time. It will need a solid bounce and then the attempt will create the real meltdown.

Given that scenario, fear of insolvency is making the financial institution attractive choice for investment.


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