Why go Long?
I am not posting here to try to provoke the bears as they emerge from a long and painful hiberation. Admittedly I came to the party late (August) and have seen most gains wiped out in just a few days. It has been discouraging, emotional and has caused me to reflect on my connection with the market.
Fundamentally I don't think a heck of a lot has changed since August. If anything the landscape has improved and there are legitimate signs that our productivity is on the upswing.
Many of my holdings have some issues that definitely make them less attractive during times of panic. I thought they were cheap and now they are cheaper!
The easy way out is to SELL. Liquidate the portfolio and close down the shop. "Wait for things to settle down..." and then start looking for overlooked gems.
But if I claim to be a value investor this is "go time" for me. All of the research must be acted upon now to benefit down the road. It won't feel pleasant and it might make me sick. To think that I am going to catch the actual bottom is absurd.
The only thing I can be relatively sure of is that the odds are better that we hit 1200 on the S&P at some point in the future. No one knows where we bottom but I think we will be back around this way...and we will still have plenty of issues that need to be addressed at that time too.
So I will go long...but wish no one any harm...