Bear markets are inevitable, they simply must happen from time to time. There are always going to be periods where equity markets do terribly because of a wide variety of problems and losses can get quite steep. There will be more market crashes where the Dow or Nasdaq lose 20, 30, or even 40% plus at a time. Having said all of that, I simply do not understand those who are long-term bears on the U.S. stock market. 
The NASDAQ Composite, though it is well off its highs from 2000, now sits at a level more than 10 times what it was as recently as the beginning of 1985. The Dow Jones Industrial Average averaged a gain of 7.4% between 1900 and 1999, and the Dow has consistently gained over periods of 30 years or more.
Those who are extreme pessimists have gone to bear funds to try to deliver returns as the stock market falls. The returns over the long run there have never proven impressive at all. The most famous bear fund of them all, The Prudent Bear Fund (BEARX) began in 1995 and has since produced an average return of -1.65% annually. The funny thing about this is, BEARX is one of the very best performers in the bear fund category of mutual funds.
These returns bring me back to my original question, why be a long term bear in this stock market? History shows you will have your times of glory and will win many battles, but will lose the war. The United States economy is likely to go through many soft patches, but it is very likely to remain strong over the long haul. I understand shorting some individual stocks as a hedge, or even turning bearish for a short-term trade, but betting on this market to go south in the long run is not a winning strategy.
Why are you a long term bear in the stock market, or why are you a long term bull in the market? Do you believe that bears will always be fighting a losing battle over the long run? I want to hear what readers have to say about this topic.
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