Federated Prudent Bear A BEARX

… in equity or fixed-income, or have up to 20% in cash; its open-end fund competition is Federated’s $1.5 billion BEARX . Pg 30: Charles Maxwell of Weeden & Co. is sticking with his $300/barrel oil prediction by 2020 ($225 in today’s dollars …

I'm considering investing part of my IRA in a good bear market fund, such as Prudent Bear ( BEARX or PBRCX). Any suggestions for a way to do this? I could just open a direct account with Federated, but maybe there is a cheaper …

     In response to Racqueteer's and closer's entirely sensible request for a new & different thread topic, I submit my thinking for an all-weather portfolio that might be used for both young accumulators for growth or by retirees for income.  Capital preservation is foremost, but I try to capture gains.      Although I could argue otherwise, I have been careful to avoid any hint of   "mov_ _ _ aver_ _ _ _"  which are verboten in either set-up or maintenance.   Percentages are approximate, and I post this for opinions and consideration -- not for actual investment.      Nothing here is back-tested; only a "Plan B" thinking without "you-know-whats." With eight legs, the portfolio will be too complicated for some.   I might simplify it somewhat.      Well, FWIW, here goes..... 20% - 30%    LEG ONE:  A diversified and flexible bond fund, or two,  actively managed by the best minds in the business.  (I like DLTNX or PAUPX.... or both.)  Manager must have wide latitude to act as he sees fit. 2% - 4%    LEG TWO:  Within the world of commodity ETFs, pick one or two with the most deteriorated price chart. Currently,  I suggest GRU, RJA or other grains. Possibly CZZ or CRESY as agri producers. 30% - 35%    LEG THREE:  A basket of 6 - 10 high yielding quality stocks, OR sold-off closed end funds trading at discount.  Suggest  CIM,  NLY,  CIK   CTL   VGR   T  VZ  LINE   MO   PFE   KMP   ED   BMY   SLRC.  There are many others, of course.  (As an alternative to a basket of stocks, the investor might buy a single equity mutual fund with good dividend yield , if he has compelling confidence in the manager.) 5%  - 7%     LEG FOUR:  Aggressive growth fund.  Low cost. 5% - 10%    LEG FIVE:  A precious metals fund. Low cost.  Also consider ASA and EGO mix. 5% - 10%    LEG SIX:   A short term bond fund or other cash equivalent for opportunities as they occur.  Part of this MAY be in a flexible yield fund. .   10% - 12%    LEG SEVEN:   A bear fund, such as SDS, BEARX or PSSDX.   (If BEARX is chosen, lighten Leg Five slightly, as BEARX usually carries a gold component within it. 5% - 7%      LEG EIGHT:   A low-cost BRIC fund ACCUMULATORS: The young accumulator starts 20% bonds, 35% stocks and 7% aggressive fund. He might reinvest all dividends within the same leg they were generated.    For new-money deposits, he might seek maximum opportunity by investing in whatever leg may be recovering from former losses; in other words, appears to be coming off a recent support level,   If no such oppty exists, the young accumulator may add up to six consecutive new monthly deposits into the cash leg.  Thereafter, he must apply future desposits into one of the other legs, even if he does not employ existing funds out of his cash leg.   Legs TWO, FOUR and EIGHT have priority for new money, unless Leg SEVEN is severely beaten down. The Young Accumulator MUST harvest incremental gains out of any leg that has grown 60% or more, NOT including new deposits..    For accumulators, growth and deployment of yield are primary considerations.  Rough balance is a secondary goal.    The Young Accumulator will maintain an "Opportunity Watch List" for BEATEN DOWN funds that have been in the basement for an extended period.  Currently on deck: TBT and more GRU.   Be very cautious of putting any individual stock on your Oppty Watch List.  (Stocks are often beaten down for a darn good reason!) RETIREES: Starts out at lower range of stocks and higher range of bonds. For the older investor who seeks income, balance among the legs is key. Rising values in some legs will cause others to fall, but the investor should be able to harvest yields and gains in any market.  Legs ONE and THREE will be sources of regular income.   Any legs that appreciate 30% or more should be harvested for gains, splitting the gain for extra income and applying the rest to legs that have deteriorated 20% or more, and thus seeking rough balance.  If the retired investor is experienced in such matters, he may, at his discretion, enhance yield and apply CONSERVATIVE covered calls to Leg THREE, always careful to write his calls well out-of-the-money to allow latitude for at least some possible gains.      Legs ONE and THREE have priority for any new money.    --richardsok

I took position (small - min. required to open a position) in this fund.  How does this fund stands compared to other funds being discussed in previous threads (as recent as a few days back)? Any alternatives to this funds are welcome. Thanks a LOT  

… bought at 8k figuring things had to turn around. No more. Bought gold for the first time and am ready to take a modest position in a bear market fund. Bearx was highly recommended, but now has a 5%+ load. Anyone have other suggestions?