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(B)(N) Hot Stocks & Parking Lots

May 18, 2015
Hot Stocks & Parking Lots

Hot Stocks & Parking Lots

Drama. Some investors use “parking lots” to decide on a stock – is the parking lot full, half-full, or nearly empty; are the cars late model; is the visitor’s parking lot busy; is there a guard-house or striking workers, and so forth; other investors use “charts” (and there seems to be a lot of that other than “value” investors and sometimes it’s a “combo” called the “active investor”) and if the future is anything like the past, Mr. Cramer’s portfolio of “Hot Stocks & Charts” is a “combo” that might give us another +100% in the next three years – which would be amazing (TheStreet, May 18, 2015, Jim Cramer — Best Charts in the Book Are in Breakout Mode).

But we won’t know that until later and there’s a lot of “uncertainty” or “anxiety” in the market because there’s now a lot of money invested in equities at high prices waiting for the next heave on “The Wall Street Pump“; however, we’re not concerned about that because the price of an income is always high in a deflationary economy (please see below) and we’ve shown many times in these Posts that the only risk in investing is not investing so what can we do with this timely portfolio of “Hot Stocks” in these “Hot Times”?

We also don’t know anything about “charts” and we’re not “value” investors either but we do know that the best time to shoot an investment is when it’s moving (and not parked or parking) and we can do that with our usual blind – 100% capital safety, 100% liquidity, and a hopeful but not necessarily guaranteed return above the rate of inflation – and our only secret for investing is neither parking lots nor charts nor “value” – our secret is “don’t lose your money” and that, surprisingly, works too and all of the time regardless of the market.

The question is, of course, are these companies with the good charts and fundamentals moving now and in what direction – it’s hard to improve on straight up (and this portfolio was straight up for three years) but what we can we do about straight down; please see Exhibit 1 below and click on it and again to make it larger as required.

Exhibit 1: (B)(N) Hot Stocks & Parking Lots – Straight Up or Straight Down

Figure 1.1: (B)(N) Hot Stocks & Parking Lots

Figure 1.1: (B)(N) Hot Stocks & Parking Lots

For more information on the Free Market Yield and the terms that we have used above, please see our Posts “(P&I) The Dismal Equation (Ecclesiastes 9:1)” and “(B)(N) S&P 100 Volatility Risk and The Full Moon” and “(B)(N) NASDAQ 100 Volatility and The Stone Bunnies“ and for an introduction to The Barometer “(B)(N) What’s A Girl To Do” or “(P&I) The Swiss Franc Debacle“.

And for more information on real “risk management” in modern times 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“, and our recent Posts “(P&I) The Profit Box” and “(P&I) The Process – In The Beginning“; and 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 applications of these concepts please see our Posts which rely on the Theory of the Firm developed by the author (Goetze 2006) which calibrates The Process to the units of the balance sheet and demonstrates the price of risk as the solution to a Nash Equilibrium between “risk-seeking” and “risk-averse” investors within the demonstrated societal norms of risk aversion and bargaining practice. And for more on The Process, please see our Posts The Food Chain and The Process End-Of-Process.

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 actionLa 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 AmericaBig OilShopping in America or Banking in America, to name just a few.


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
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


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*.

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