Mar-13th-2010

Is it smart to invest a portion of your holdings in a short/bear mutual fund?

I have 40% stock, 40% bond, 20% cash. Would it provide real downside protection if i put say 5-10% in short mutual funds like Prudent Bear or PIMCO Short Strategy?

This entry was posted on Saturday, March 13th, 2010 at 12:30 am and is filed under Investing Strategies. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Is it smart to invest a portion of your holdings in a short/bear mutual fund?”

  1. John S says:
    March 13, 2010 at 12:30 am

    Sure, in a bear market. Short funds, especcially short ONLY funds usually get killed in a bull market and will drag down the overall performance of your portfolio. So it’s always a double edged sword.

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