Avian Flu and the Stock Market

Investment banker and stock broker Bear Sterns is the first to take into account a possible outbreak of avian flu. The firm advised its clients to drop airline and retail stocks, and replace them with blue chip utilities. Bear Stearns warned that an avian flu outbreak among humans could send the stock market 46% lower.

We believe the imminent arrival of bird flu in the United States will bring this potentially devastating disease back into the limelight. We believe investors should consider a basket of stocks to inoculate their portfolio from this source of risk.

Among its recommendations: Scottish Power PLC (SPI), General Electric (GE), Amgen Inc. (AMGN), Medimmune Inc. (MEDI) and St. Jude Medical Inc. (STJ).