Learning From the Janus Blowup

Some great disasters make you want to avert your eyes. The Hindenburg. Ishtar. Janus. If you lost money in a Janus fund, you won't get it back anytime soon. But you can make sure you won't get killed again.

Before the market cratered, there were signs that Janus was starting to stumble. Of course, few people saw them back then. But a look back at what happened to this firm and its once-mighty funds produces a handy checklist of signals that should help you avoid a Janus-like catastrophe in the future.

Too Much Money

Those hot Janus returns during the '90s were the ultimate come-on for investors. Year after year, money poured into funds, sending the firm's assets from about $1 billion at the start of the decade to over $300 billion by 2000. ...