This will offer some downside
protection during bear market.
This system invests in well capitalized companies with strong market positions, which pay good dividends, have price appreciation potential, and provide a degree of downside
protection during bear markets.
In addition, academic research has shown that dividends offer
protection during bear markets.
One can see the classic trend following pattern: capital
protection during bear markets, some lagging performance during strong bull markets (by definition there is a bit of a lag to jump on board of a trend).
Not exact matches
Even though the current bull
market is in its eighth year and is the second - longest bull
market in U.S. history, the downside
protection the DRS generated through the
bear markets of 2000 - 02 and 2007 - 09 have compensated for its underperformance relative to the S&P 500
during the last several years.
Actively managed mutual funds also give investors the opportunity to earn
market - beating returns and get
protection from big losses
during bear markets.