In this increasingly dangerous bear market — each passing trading session makes it look like a free fall — where does one turn for protection? That’s the $64,000 riddle confronting investors. Clearly, nothing is invulnerable in a steadily falling market, but the name of the game in such an environment is to latch on to investments that can limit the downside.
In search of a bear market survival kit, I raised the protection issue with five pros, some of whom believe the market’s 20%-plus downturn since October’s Dow high of 14,164.53 is hardly the end of the dive.
A couple of our worriers favor inverse exchange-traded funds, which are designed to rise when a particular stock index or market sector goes down. They’re available in assorted indices, emerging markets, and such areas as real estate, technology, financials, consumer goods, and semiconductors.
One bear pitching such ETFs is the associate editor of the Florida-based newsletter Safe Money Report, Michael Larson.
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