(B)(N) What’s A Girl To Do?

It’s Your Deal Courtesy: His Station and Four Aces by C. M. Coolidge, 1903.

Drama. The pundits are at it again, earnestly trying to divine now, and the future, from the past. Mr. Kass of TheStreet likens the “market” to a game of poker with “rational actors” in all the seats (The Street, August 5, 2014, Kass: Pressures Pile Up on Markets).

However, it would seem to us that a rather basic observation is that what is rational for one person, might not be rational for all – and money talks – but in that confusion and confliction, we can be almost certain that the investors are not playing the game in order to have a better chance of losing their money.

Hence, what we need is guidance to the three words that move us – safe, liquid, and hopeful – and if we don’t hear those words, it’s just a gamble – and we don’t hear them.

Goldman Sachs, however, has raised the ante and now thinks that the long-term equity markets are likely to produce a 4% real return, whereas the 10-year Treasury note is likely to produce a negative real return of minus (1%) (Business Insider, August 5, 2014, GOLDMAN: A ‘Dramatic Divergence’ Is Coming To Stocks And Bonds).

It’s not that hard …

However, there’s no need to wait and see because we can just buy and hold the (B)-class companies – regardless of their price, but subject to an attentive stop/loss policy – in the major markets, and collect our dividends while the players argue about what time it is.

And it’s not that hard, once we got the hang of it.

For more information on real “risk management” and additional references to the theory and how to read the charts and tables, please see our Post, The RiskWerk Company Glossary and “(P&I) Dividend Risk and Dividend Yield“; we’ve also profiled hundreds of companies in these Posts and the Search Box (upper right) might help you to find what you’re looking for, such as “(B)(N) TLM Talisman Energy Incorporated” or “(B)(N) ATHN AthenaHealth Incorporated” or “(B)(N) PETM PetSmart Incorporated“, to name just a few.

And for more on what risk averse investing has done for us this year, please see our recent Posts on “(P&I) The Easy (EC) Theory of the Capital Markets” or “(B)(N) The Easy (EC) Theory of the S&P 500“, and the past, The S&P TSX “Hangdog” Market or The Wall Street Put or specialty markets such as The Dow Transports & Utilities or (B)(N) The Woods Are Burning, or for the real class action, La Dolce Vita – Let’s Do Prada! and It’s For You, Dear on the smartphone business.

And for more stocks at high prices, The World’s Most Talked About Stocks or Earnings Don’t Matter – NASDAQ 100. And for more on what’s Working in America, Big Oil, Shopping in America or Banking in America, to name just a few.

Postscript

We are The RiskWerk Company and care not a jot for mutual funds, hedge funds, “alternative investments”, the “risk/reward equation” and every other unprovable artifact of investment lore. We have just one product

The Perpetual Bond™
Alpha-smart with 100% Capital Safety and 100% Liquidity
Guaranteed
With No Fees and No Loads on Capital

For more information on RiskWerk, please follow the Tags or Categories attached to this Letter or simply enter Search for additional references to any term that we have used. Related data may be obtained from us for free in a machine readable format by request to RiskWerk@gmail.com.

Disclaimer

Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are, now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”) . The Canada Pension Bond®™ and The Medina Bond®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.