Bankruptcy Avalanche Will Crush All Stocks In Its Path
-- December 18, 2002
Conseco's bankruptcy filing on Tuesday reinforces what we've been telling you for quite some time now: The Bankruptcy Avalanche is underway. Enron, Kmart, Global Crossing, Adelphia, WorldCom, US Airways, United Airlines, and hundreds of other public companies have filed for bankruptcy in the past two years, according to BankruptcyData.com. In fact, 11 of the 20 largest bankruptcies of U.S. companies occurred during the last two years -- that's $395.9 BILLION in assets affected, based on court documents and corporate filings.
But the Bankruptcy Avalanche isn't over yet. We expect several more major companies -- and hundreds more small companies that you may not have even heard of -- to declare bankruptcy in 2003. We are currently monitoring these companies closely because it's only a matter of time before many of them go belly up. When they do, their shareholders will be the big losers. Plus, it will only add to investor concerns about the health of the economy and the safety of their own holdings. And when investors are uncertain, they invariably sell everything they can.
The stock market sell-off we've been telling you about is already underway. Still, there's much further to go before we hit bottom.
Conseco Seeks Chapter 11 Protection