Your Money

By Daniel Eisenberg

THE STEALTH BEAR MARKET

Those who've been awaiting the long predicted "correction" in the stock market might be surprised to learn that it's already happening, albeit quietly and in slow motion. A report out last week from Salomon Smith Barney showed that, while the Dow has soared this year, the average S&P 500 stock is down 19% from its 52-week high, and NASDAQ stocks have dropped 35%. So consider shifting more of your portfolio to bonds and cash.

DON'T BANK ON BANKRUPTCY

Could debt-ridden Americans, who filed for a record 1.3 million personal bankruptcies last year, be ready to kick the habit? Some Congressmen are trying to make it more difficult to seek bankruptcy protection, but lower interest rates may help stem the rising tide, at least temporarily, according to a report last week from SMR Research. Before taking the drastic step, try refinancing your mortgage and consolidating all your debt.

BUYING DOWN TO RIO

If you're feeling wary about the volatile U.S. market, join the worldly investors who have bet close to $600 billion on ADRs, or American depository receipts: shares of foreign companies that trade here at home. Last week the Brazilian phone monopoly Telebras, the most widely held ADR, soared after being privatized. For information, check out www.bankofny.com and www.adr.com J.P. Morgan's giant new website.

--By Daniel Eisenberg