Bear Funds

As signs begin to emerge that an economic slowdown, if not an outright recession, is imminent, investors are looking for safe investments in a bearish market. I talked a bit before about how to recession proof your portfolio as well as saving money in a recession. Well, a bear fund, or a shorting fund, might be another investment tool to add to the mix. Generally speaking, a bear fund is a mutual fund that is positioned in such a way that it makes money when the market is going down. These funds will do things such as buy put options, sell short and other investment strategies to raise the value of the fund as stocks and other markets are losing value.

Considering that the market has been on a steady rise for a long time now and is possibly poised to drop, now might be an opportune time to take advantage of a bear fund.

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