Bear Funds
 

I was wondering what everyone's thoughts were on bear mutual funds. I've been looking at Comstock (CPCRX) and PrudentBear (BEARX). Seems to be a lot of speculation that the market is headed south so I've been thinking about cutting some risk by purchasing a bear fund.

Re: Bear Funds
 

Bear funds usually have very bad long term records. ou are better going to cash or short term bond funds, that way you are guaranteed a positive return (albeit a small one). But it's very difficult to time the market, so knowing when to enter and exit is very tricky.

If you are along term investor, you are much better off staying fully invested, esp. if you are in index funds or similar ETFs. It's not enough to miss the declines if you don't time your reentry right. So studies have shown just holding tight offers the best long term returns.