If I am expecting that the US and European markets to be in bear territory for a long-term, are there any funds in the bear market territory that could go up with a corresponding fall in the S&P Index that I could put my CPF funds into? - Seedly
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CPF

S&P 500 Index

NYSE (New York Stock Exchange)

Guy

Asked on 16 Mar 2020

If I am expecting that the US and European markets to be in bear territory for a long-term, are there any funds in the bear market territory that could go up with a corresponding fall in the S&P Index that I could put my CPF funds into?

Any words of advice?

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Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Aug)

Level 9. God of Wisdom
Answered on 30 Mar 2020

Don't be too pessimistic,

the U.S. stock exchanges will still receive a bigger blow but only short term-wise,

when the european markets will be poised to a more sustained drag down.

Mr. U.S. market will recover anyway.

Faites simple: just try VOO for ultralongterm, not so much thinking needed ...​​​

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Shaun WQ Lim
Level 8. Wizard
Answered on 31 Mar 2020

Please do your due diligence before doing anything, if you don’t understand.

None for CPFIS.

For ETFs, you may want to look at inverse ETFs.

Note that some of them are leveraged.

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You go short or buy put options.

Defensive equities have somewhat a negative correlation to this situation.

Zoom. Walmart. Just to name a few.

For CPF funds, best would be to revert back to the CPF basic interest return account. Hariz is correct on the available options now.

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I believe you're asking regarding negatively correlated assets to the S&P 500?

The only real choice you have would be US Investment Grade bonds that has illustrated a correlation of -0.22.

There are currently no funds available in the OA investable space that provides such exposure.

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