Archive for February, 2009

The Sun Also Rises

Tuesday, February 10th, 2009

As I write this, the US stock markets are being brutally thrashed, down around 4.5% overall and roughly 10% for the financial sector.

For the moment, it’s a good reminder that a long-short portfolio can be very valuable, as it largely damps out the effect of big whole-market movements.テつ (For the record, some stocks are up, even today.)

It’s good to keep in mind, that the sun and the markets and the economy will rise again.テつ Probably the markets and economy won’t rise again as soon as the sun will, but they will rise.

Eventually, stocks (including overseas stocks) will rise again.テつ But not yet.テつ There is no benefit to rushing to buy.テつ When you start to see a little lighter grey, then a little color in the east, that will be the time.テつ Be patient.