As someone who has been holding a bear fund (BEAR--Prudent Bear) for a long time, I don't think they are a very good idea. It works a lot better for me to choose my own bearish shots, using either puts or short-term trading (on the short side) of the QQQs.
I think the bear funds are, at the very best, the bear's equivalent of a passbook savings account on the negative side. BEARX has been a terrible investment for me. maybe the ProFunds are better, if you trade them at the right times.
I hate being a bear. It aint AMURICAN!
But if everyone is determined to be absolutely nuts, there's not much choice. I have already posted twice my astonishing discovery, at least as reported in Business Week for July 16 on page 82, that some mutual fund mangers are using the NASDAQ trading trust, the QQQ, as a place to park funds set aside to redeem shares, "because it is so liquid." The ultimate insanity of the bubble is still here.
I have been, and will continue, shorting QQQ every time it heads towards 45-50, sometimes lower. I have done it at least ten times and have made money every time. |
