There was nowhere to run on Friday as the DJIA dropped 318 points.

The broad market had its worst week in quite some time. But if you look at the 1-year chart, it hardly gives reason to panic. (Chart from Yahoo.)

Market Shadows Value Portfolio took some lumps but it still reflects our best choices for long term investing.

We had positioned ourselves for a pullback by holding a larger than typical 18.7% cash position.  We intend to put those reserves to work as the sell-off presents opportunities.

Our original stake of $100,000 is presently worth $134,692 in stocks and cash. We made no new outright stock purchases during the past week. We did, however, establish some new option trades in our Virtual Put Writing Portfolio. The new transactions will either make some money when the new puts expire, or potentially lead us to buy shares of fine companies at well under their current market prices.

See details of all Market Shadows’ current and previously closed equity positions by clicking here.