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

To: Investor2 who wrote (138)	11/11/1997 6:25:00 PM
From: Tommaso	Respond to of 226

I suppose if you think the market is going to go up it would be best to buy SPY. But one cannot sell BEARX short (as someone joked about doing on another thread). Go ask any broker; most would still probably recommend buying SPY. No one but us chickens here seem to know about BEARX, though it did get recognized by both Barron's and the Wall Street Journal in the last couple of weeks as the fund that did best out of several thousand. It is so obscure that the Journal thought Prudent Bear was part of the Prudential group of funds.

To: Investor2 who wrote (138)	11/11/1997 6:56:00 PM
From: Snowshoe	Read Replies (1) \| Respond to of 226

>>1. Are you implying that past performance can be used to project future returns? If so, buy SPY.<< Absolutely not! The sole purpose of this chart is to illustrate the relative performance during recent market fluctuations. This info can be helpful in deciding which fund to buy, and how to choose an entry point. At the current time I have about 15% of my retirement money in standard index funds, but none in BEARX or RYURX. >>2. Niether of the "bear funds" have declined as much as the S&P has gone up. (I suppose that is because they have some of their money in cash equivalents? Or are they slightly hedged to protect against market rises?)<< BEARX is actively managed and I suppose it could theoretically even rise during a bull market, if the fund management was clever enough to short the right stocks. RYURX is structured to be a mirror image of the S&P500 index. I'm not quite sure about the slight performance deviation from SPY. >>3. Given comment 2, above, is there any information available on the degree that the "bear funds" will mirror the S&P in the case of an extended market decline? Will their % increase in share price be the same as the % S&P declines? Half as much? Twice as much?<< I'm not sure. I advise that anyone considering these funds should read the prospectus before investing. I'm not recommending that anyone buy these -- I'm just providing some comparison info!