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Pastimes : Prudent Bear Fund (BEARX): contrarian investing -- Ignore unavailable to you. Want to Upgrade?

To: StaggerLee who wrote (384)	10/9/1998 8:44:00 AM
From: Tommaso	Read Replies (1) \| Respond to of 793

Twice in this century the "blips" have lasted 2-4 years, and the recovery from them has taken 10-20 years. In the context of the market decline, "short term" and "long term" mean for me 2-4 months and perhaps a year. I am discussing BEARX and not a diversified equity fund that, when purchased at reasonable levels (i.e. half of current valuations) one can hold for a decade or more. In fact, I hold a diversified group of closed-end funds that I bought about twenty years ago, and also some blue chips that have appreciated so much that the tax bill would be enormous. I have short sales against those to lock in profits. What has been your experience with this "blip?" What are you invested in?

To: StaggerLee who wrote (384)	10/9/1998 9:41:00 AM
From: HB	Respond to of 793

BEARX is not by policy net short forever. Their "Strategy and Investment Objectives" page on their website says Tice plans on being net short when the dividend yield on the S&P 500 is below 3%, and "more fully invested long up to 75%" when it is above 6%. Between 3-6%, we can expect the percentage to vary. Point well taken that that is a pretty bearish plan nonetheless. Of course, I'm slowly selling, forcing Tice to cover to meet my redemptions and leaving you guys holding the bag. Yeah right! Well, so far, you guys (and gals) are holding a bag full o' change... congrats! But remember, cash is king! Now, would that be yen, or Euros, or Swiss francs, or.... HB