Long-short investing strategies aren’t just for hedge funds anymore. Many investors believed diversified “long-only” portfolios would always serve them well, regardless of the market conditions. They expected certain asset classes would perform well even as others were struggling.

Fed will Buy up to $1 Trillion in Securities; Source: IBM Looking to Buy Sun; Record Hedge Funds Collapses in 2008; Stale Earnings at General Mills; World Bank: China Stabilizing; AIG Exec Asks for Bonus Money Back

If you’re like many investors, you are probably sitting on the sidelines right now, unsure of what to do. If you want to buy, you may be thinking “let’s wait a little longer.” If you want to sell, you might be concerned about “missing out.”

IMF Predicts Global “Great Recession”; United Tech. Cuts 11,600 Jobs; Brazil Economy Grows 1.3% in 4Q; Malaysia Adds $16 Billion to Stimulus; GM to Sell Half of Opel; Big Corporate Bankruptcies Surge in 2009; Hedge Funds to Slash 20,000 Jobs; SEC Will Bring Back Uptick Rule

Conventional wisdom has it this morning that stocks are at the start of a rebound.  And for all I know, that’s true; technician types say the market is way oversold.

Playboy in Play? Honda Throttles Back Jet Program; Hedge Funds to Hedge Bets After Losses; JPMorgan Will Modify Loans; Google Will Rather Fight Than Switch; Mortgage Applications Soar as Rates Fall

To ease the ongoing credit crisis and get banks lending again, the Obama administration realizes that it first has to resuscitate the “shadow financial system” that’s dominated by hedge funds and other large-scale private investors.

When Pfizer Inc. (PFE) unveiled a $68 billion buyout offer for U.S. rival Wyeth (WYE) last week, it sparked hopes that the deal might re-ignite the moribund merger market. But when the Wall Street dealmakers take a closer look, those flames will likely be doused in cold water.

Best Buy Names New CEO; IBM to Post Strong 2008 Earnings; BHP Cuts 6,000 Jobs; GM Loses Sales Crown to Toyota; Investors Retreat From Hedge Funds; Housing Market Index Hits New Low; Satyam Seeks Funding; Crude Futures Climb

I’m happy to turn the page on 2008. We had a great streak of profitable trades in Strategic Short Report, but it still was a stressful, painful year to be an investor. Even if you’re far more patient and disciplined than most investors, you still were punished in 2008.