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Strategies & Market Trends : Investing during a Bear Market

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To: Investor2 who wrote (91)11/10/1997 12:30:00 PM
From: Tommaso   of 226
 
Right. They hold cash in T-bills as security against their large short position. The value of the fund fluctuates according to mark-to-market activity back and forth. When the market fell about 6%, BEARX went up about 11%. Usually it's not that dramatic. The fund was started in a rising market so naturally it's had a bad record for its first eighteen months or so. To my mind that makes it a good buy.

But if the stock market goes to glory, Prudent Bear goes to hell.
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