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1.
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.
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 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.
5.
During a recessionary period, what usually holds up well?
Health-care stocks. Stocks of companies that produce must-have products, such as drugs or food, tend to do best during recessions. Those investments dependent upon a healthy economy, including junk bonds and cyclical stocks, tend to do poorly.
