Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Condor who wrote (40088)	10/23/2003 11:12:51 PM
From: energyplay	Read Replies (3) \| Respond to of 74559

Rydex Funds has a number of inverse funds - RYAIX -Rydex Artos invers Nasdaq 100 RYVNX - 2X inverse Nasdaq RYURX ? Rydex URSA inverse S&P rydexfunds.com What's the catch ? 1) Don't track perfectly - some slippage. 2) Lots of fees and expenses from buying puts etc. 3) ONLY buy /sell at a fixed end of day price. 1& 2 mean you will lose about 4 % a year (maybe 6-7% in 2X) if the index stays flat. So if you think Nasdaq might be down 10% in 6 months, these are not a good vehicle. If you think Nasdaq will be down 25% in three months, they may work for you. BEARX is a more selective bear fund taht shorts specific stocks that Dave Tice thinks will drop.

To: Condor who wrote (40088)	10/24/2003 2:04:00 AM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 74559

Hi Condor, Does anybody know about an instrument that plays to market decline? The only thing I can recall is the fiddle that Nero used while Roman markets burned... <g> KJC

To: Condor who wrote (40088)	10/24/2003 9:15:58 AM
From: rolatzi	Respond to of 74559

BEARX, the prudent bear fund is a no load fund. From its latest report: The stock market rally continued in the third quarter. Despite a sell-off in late September, the S&P 500 index returned 2.65% for the three months while the more tech-heavy NASDAQ returned 10.11%. The NASDAQ also outperformed the Dow Jones Industrials which gained 5.05%. Technology stocks, including Internet and chip stocks, were among the quarter’s best performers. Continued enthusiasm for high tech names propelled the NASDAQ to a 52.46% return for the 12 months ending 9/30/03. That’s more than double the 24.40% return of the S&P 500 over the same period. The Prudent Bear fund returned 7.38% for the quarter, bringing the 12-month total return to -12.58%. The Prudent Bear fund continued its conservative approach during the bear market rally. For example, the fund is short fewer individual stocks than is typical, maintaining most of its short exposure through market proxies. This strategy is designed to reduce the risk of a “short squeeze” in an individual stock. The fund continued to limit short exposure to especially volatile segments of the market, including the technology sector. The fund did maintain “crash protection,” however, as it retained far more short than long exposure throughout the period. Long positions, almost exclusively gold stocks, continue to account for about 25% of fund assets. Combined with its conservative position, the exposure to gold stocks enabled the fund to produce a positive return for the quarter despite rallies in the major indices. The fund manager continues to believe that the secular bear market that began in March 2000 has yet to run its course. Strong rallies are as much a part of secular bear markets as their ultimate downward trend. Japanese stocks, for example, produced positive returns in four of the ten years following their bull market peak. Today in the U.S., several characteristics of the stock market bubble remain, including high valuations, frantic trading, widespread investor enthusiasm and paltry dividend yields. In our view, the secular bear market will resume as rich valuations and the repercussions from historically high debt levels overwhelm investors’ fears of “missing the next leg up.” I am not soliciting this fund but do own some shares. RO