The market, which spent the second week of August repairing some of the damage from the correction that peaked on August 8, has been showing its teeth again, pulling most stocks down with it. This kind of extreme reaction to the financial crisis in Europe is disappointing, but not disastrous. We have pulled our portfolio back to a mere 25% stock exposure, keeping three-quarters of our capital on the sidelines, preserving our cash base to use when the market turns back up. Defense is the name of the game, and if you haven’t done a similar amount of selling, it’s not too late to start. We have an exciting recent IPO for you to add to your watch list, but other than that, there are no changes in today’s issue.
