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1.
The investments that perform poorly during bear markets tend to be the same ones every time.
False. Each bear market attacks in different ways. Certain sectors tend to be hit harder in different ones.
2.
How do bear-market funds aim to make money during bear markets?
By shorting assets. By shorting assets in certain classes, bear-market funds aim to do well when the market heads south.
3.
In historical terms, bear markets are normally _______ in length.
Brief. On average, bull markets have tended to be longer and bear markets shorter.
4.
During a period of deflation, what usually holds up well?
Intermediate- and long-term bonds. Bonds tend to hold up relatively well in deflationary environments. Because their dividend income payouts are effectively worth more in this type of economy as the prices of goods decline, their purchasing power actually grows in deflationary environments.
5.
Bond funds often perform well, relatively, during bear markets in stocks.
True. Though not a given, historically they have held up well.
