A reverse mortgage can provide some benefits during a bear market, particularly for retirees or those with limited income sources. Here are a few ways a reverse mortgage might be helpful during a bear market:

1. Supplement income: In a bear market, investment portfolios may suffer losses, leading to reduced income from dividends, interest, or capital gains. A reverse mortgage can provide additional cash flow to help cover living expenses or other financial needs without selling investments at a loss.
2. Preserve investments: By using a reverse mortgage to supplement your income during a bear market, you may be able to avoid liquidating your investments at lower prices. This strategy can give your investments time to recover and potentially grow in value when the market rebounds.
3. Reduce sequence of returns risk: Withdrawing from your investment portfolio during a bear market can exacerbate the sequence of returns risk, which refers to the negative impact of taking withdrawals during a period of poor investment returns, particularly early in retirement. By using a reverse mortgage to supplement your income during such periods, you can reduce the need to withdraw from your investments, potentially mitigating the sequence of returns risk.
4. Flexible disbursements: Reverse mortgage proceeds can be received in various ways, such as a lump sum, monthly payments, or a line of credit. This flexibility allows you to access funds as needed during a bear market, providing a financial cushion to help weather the downturn.
5. No monthly mortgage payments: Since reverse mortgages do not require monthly mortgage payments, they can help relieve financial pressure during a bear market by freeing up cash that would have otherwise been used to make mortgage payments.

The Reverse Mortgage available funds are based on your appraised value so it stands to reason that you will have more funds available to you when values are high. The FHA HECM has two big benefits for people who want to protect the equity in their homes against the potential downside of recession. The first benefit is that the HECM line of credit is guaranteed by the FHA insurance fund. The second is the growth rate of the unused portion of the line of credit. It is plausible that in a severe market downturn, you could have a line of credit greater than the value of your home.