Filed under: NewslettersInverse funds are ones that move opposite to a given market or index. For example, an inverse stock fund will rise in value if the associated stock index falls in price. Thus, an investor can use an inverse stock fund to hedge an otherwise long portfolio or a speculator can use an inverse stock fund as an easy way to bet on declining stock prices.Sector fund expert Bill Donoghue, in his Proactive Fund Investor, looks at inverse stock -- as well as inverse bond funds -- to add safety to his portfolios in case of a market correction or rising interest rates. He considers these "safe harbor" positions.Continue reading Donoghue bets on inverse funds as a 'safe haven'Permalink | Email this | Comments