Imagine losing 80% or more while, all around you, investors are basking in the glory of one of the biggest bull markets in history. Imagine racking up year after year of losses while stocks are going up nearly 400%.
That’s what it’s like to run a short-selling fund that hedges against the risk of a falling stock market….
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This article was originally published on The Wall Street Journal.
Further reading
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Devil’s Financial Dictionary
Benjamin Graham, The Intelligent Investor
Learning from the Bear Market of 1973-1974
Buffett and the Bear
What A Bear Market Might Teach Us
Stop Worrying, and Learn to Love the Bear
A (Long) Chat with Peter L. Bernstein
Will You Be Ready When the Stock Market Crashes Again?
When the Stock Market Plunges…Will You Be Brave or Will You Cave?