A Bear Market Killer: One No Load Fund That Bucked The Trend

A few days ago, I was discussing the bear market of 2000–2003 with a prospective client, when he pointed out that he actually held on to one fund profitably through the severe downturn.

Really! Even though we avoided most of the bear by being in cash on the sidelines, any fund which has the ability to hold up against the major trend is worth looking at.

Take a look at the chart of PRPFX:

The 2 arrows indicate the period from 10/14/2000-4/28/2003, which represents the brunt of the bear market. While we sat in money market during this time, the S&P; 500 lost -34.57%, while the above no load fund gained +15.95%. That’s a difference of over 50%!

Before you rush out and leverage your credit cards to buy this fund, be aware that it has been a very average performer lately. However, it’s good to know that funds which buck the trend exist; because I am pretty certain that it’s time in the spotlight will come again.

If you are aware of other bear market bucking no load funds, feel free to share them with me.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
This entry was posted in Uncategorized. Bookmark the permalink.