5 Funds to Play a Bear Market Move

Expecting a turn for the worse? Here's how to get defensive

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5 Funds to Play a Bear Market Move

PIMCO StocksPLUS TR Short Strategy

PIMCO 5 Funds to Play a Bear Market MoveShort selling basically allows an investor to make a profit when a stock falls. It’s a practice that’s often subject to controversy and even scorn, but still, many of the world’s top investors — such as George Soros, Jim Rogers and Ray Dalio — engage in the practice.

Another avid short seller is the “Bond King” Bill Gross, manager of the PIMCO StocksPLUS TR Short Strategy (MUTF:PSSAX) fund, which takes a short position in the S&P 500.

As one would expect, the returns of a fund that goes short on the market have been miserable of late; PSSAX has lost 7% in the past year. But when markets fall, the PSSAX can provide some comfort. Case in point, 2008: While the S&P 500 plunged 41%, PSSAX ripped off 47% returns.

PSSAX charges 1.04% in expenses and requires a small minimum investment of just $1,000.


Article printed from InvestorPlace Media, http://investorplace.com/2013/02/5-funds-to-play-a-bear-market-move/.

©2014 InvestorPlace Media, LLC

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