We tried holding up stock prices but couldn’t get the job done. Market Shadows’ Virtual Value Portfolio dipped by 2% during the week but still holds on to a market-beating 8.45% gain YTD. There was no escaping the downdraft after a major Portuguese bank failed. Of all the triggers for a large selloff, I’d guess the Portuguese bank failure was pretty far down most people's list of "things to worry about." 

All three major indices gave up some ground with the Nasdaq composite taking the hardest hit.  

Our basic premise is that stocks are the only game in town. Our premise remains in force; we don't see a reason to believe anything has changed. Market downturns are normal in any market environment, we have just become accustom to strong performance. 

Cash earns next to nothing while inflation is much worse than our government will admit to. We plan on staying fully invested in stocks.

We like being positioned in names that can hold up to a much weaker recovery than the main stream media seems to expect. Check out Paul's recent GuruFocus article on our Virtual Value Portfolio holding Kelly Services (KELYA). Paul added to his KELYA position in his personal account yesterday: Kelly Services: A Trader's Dream.