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Strategies & Market Trends : Investing during a Bear Market -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (132)	11/11/1997 4:50:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 226

I think you are right. I see BEARX as something to make money on during what (as always, one must ad, in my humble opinion) would be the first 20% down. Till we get back to the "irrational exuberance" level of mere 20% overvaluation. Yes, you are right, the brokerage fees are going to eat up about 2.5% on top of the management fee, making about 4% a year. But think of all the people who used to pay the 8% front-end loads to get into the Templeton fund. Hope you will tell me when you are getting out--I probably will want to also. It might be in two weeks and it might be in a year or more. By the way, as I mentioned to Bonnie, Quick and Reilly only charges a flat $25 for a mutual fund trade. You can buy $25,000 of BEARX for a fee of one-tenth of one percent and it qualifies for their IRAs--the only way I know to short in an IRA. The fund itself is no-load.

To: Cynic 2005 who wrote (132)	11/11/1997 11:48:00 PM
From: Bonnie Bear	Respond to of 226

Mohan: I do not think there has been a fund set up like BEARX designed for this purpose. Its performance on the monday selloff is very comforting. All of the "contrarian" funds lost money, it's true. The reason most funds lose money in bear markets is that most bear markets are caused by interest-rate increases, so the bond-backed reserves of the funds lose. Tice seems to be very aware of this pitfall. Besides, the concern doesn't apply to our current bear. (at least not yet).