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1.
Bond funds often perform well, relatively, during bear markets in stocks.
True. Though not a given, historically they have held up well.
2.
During a period of rapid inflation, what usually holds up well?
Hard assets like precious metals and commodities, as well as inflation-linked bonds. Hard assets and inflation-linked bonds provide a bulwark against inflation, while many other asset classes gets ravaged.
3.
During a bear market, _______.
A particular type of investment performs poorly. Investments lose money during a bear market. Not all bear markets are marked by rising inflation or recession.
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.
In historical terms, bear markets are normally _______ in length.
Brief. On average, bull markets have tended to be longer and bear markets shorter.
