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Pastimes : Prudent Bear Fund (BEARX): contrarian investing
BEARX 4.100-1.0%Nov 26 4:00 PM EST

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To: Tommaso who wrote (381)10/9/1998 8:32:00 AM
From: StaggerLee  Read Replies (2) of 793
 
>>can't seem to decide whether long term or short term is better for holding a fund. <<

Long term, a diversifed fund with a net short position is destined to become insolvent. Almost by definition, isn't it? It might take 5 years, or 10 years, or 50 years, but no fund can survive betting against the long term trend forever. Since markets normally go up, BEARX will normally go down. Eventually, net assets become zero.

Enjoy the blip.
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