On March 11, 2008, CNBC’s Mad Money host, Jim Cramer emphatically said it was foolish to move money out of Bear Stearns.

He claimed that Bear Stearns was just fine. He was totally wrong. A week later JPMorgan agrees on March 16 to buy Bear for $236 million, or $2 a share, representing just over 1 percent of the firm’s value at its record high close just 14 months earlier. The deal essentially marked the end of Bear’s 85-year run as an independent securities firm. On Monday, March 17, Bear shares closed at $4.81 on optimism another buyer may emerge. The average target price: $2. Don’t confuse advice from someone in the entertainment business with advice from someone who manages money. In fact, don’t pay attention to anyone’s predictions. No one knows the future!

The Intellectual Void | Dancing with the Trend | StockCharts.com

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