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Page 1 of 4

February 2016 © Copyright StockTakers, All Rights Reserved. Copying Prohibited. The author does not provide investment advice. In order to use reproduce or convey the material herein,

in any way, written agreement must be obtained from the author or its agent Architypes Inc.

StockTakers Limited is an Alberta corporation providing information on “likeables” equities.

StockTakers Limited encourages your seeking tax law advisor for capital gains tax dispositions.

Man Bites Man! Dominoes in The Park.

Really, as easy as that? A comfortable retirement, playing dominoes in the park, playing golf with friends or strolling on the beach after dinner before a night sail. Having an active and comfortable retirement is the pitch, for trusting your wallet, your cache, to the wannabes of insurance, gulling around you long before you even get close to that beach. It is a ‘cold crime’ before you call police.

A former Super Bowl special advertisement, most North Americans have seen, features a single domino (standing as a metaphorical dollar) starting the cascading fall of a series of increasingly large blue blocks the last one 30 feet tall. The symbolism is amazing for its bold lie as large as the symbolism. It is all about promiscuity. The park is one of those zoning inducements for bonusing building height of a real estate development, a desertified plain of imagination no one occupies, suspecting it is ‘minimalist’ art with imaginary fence they impose on themselves - fenced from touch or stain - as a museum piece, ‘look but do not touch’ out of fearing promiscuity.

The promiscuity here is about the promise projected by this imprudential demonstration. A 1 inch by half inch by tenth inch domino (your metaphorical dollar donation) starts the way to knocking down your problem of a happy retirement at play, that 30’x15’x3.6’ block is 466,560,000 times the size of the little domino. Make that $45 dollars a month for 30 years you are encouraged giving to the very company that refused to payout to war injured veterans, instead illegally putting the money into their stock1 as if they were a ‘bank’ and then dribbling it out over time, some veterans committed suicide from suffering their injuries inattention due treatments they could not afford.

That scale of the last ‘blue-box’ block lie represents $20.995 billion they will have built ‘for you’ on your series of 360 donations of $45 dollars, a total of $16,200 premiums you paid. That beggars any reasonable explanation, but the expectation they have planted in your imagination gets calls to be gulled by sales-pitch substitution of fine print ‘disclaiming forward projection’. That is, ‘notwithstanding’ they are saying they will earn for you after they take their fee which is something they have never done, earning so much more than their fee. Cashing in his safe career, a Harvard professor, was hired to bring august credibility to make this shill. It is grifting.

The other pitch the insurance companies are making is that if you give them your money now, in ten years they will start to give it back to you at 5% each year for 20 years. They have use of your

"for the value of money is also perishable." Jean-Baptiste Say , 1803

“Remember, that credit is money.” - Benjamin Franklin, Autobiography, 1791

What investors expect of financial products is a way to secure their hard earned savings while growing their wealth. The circularity of ‘investment talk’ is what Alice gets at the Tea Party. “Take some more tea,” the March Hare said to Alice very earnestly. “I’ve had nothing yet,” Alice replied in an offended tone: “so I ca’n’t take more.” “You mean you ca’n’t take less,” said the Hatter: “it’s very easy to take more than nothing.”

Pretty much, they have taken it all before you arrived. “Alice, meet Dr. Artful Dodger.”

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Page 2 of 4

February 2016 © Copyright StockTakers, All Rights Reserved. Copying Prohibited. The author does not provide investment advice. In order to use reproduce or convey the material herein,

in any way, written agreement must be obtained from the author or its agent Architypes Inc.

StockTakers Limited is an Alberta corporation providing information on “likeables” equities.

StockTakers Limited encourages your seeking tax law advisor for capital gains tax dispositions.

Man Bites Man! Dominoes in The Park.

cache for ten years first as ‘free money’ then they dribble it back at 5 % each year until you have your money back, never having paid you any interest at any time at all, after thirty years of inflation that last 5% installment is paid at the inflation eroded rate of $0.25 per $1.00 you gave them.

At least in ‘selling quarters for dollars’ they are ‘honestly’ telling straight out up front they are filching your money, gulling the public on a reputation that is all smoke and mirrors of the FIRE industry being as reliable as a rock. And you have the other real risk, like so many in 2008, they actually do go bankrupt on their bad-risk analysis and you get next to nothing back, less than a quarter on the dollar, because these are not insurance policies, these are investment schemes sold to the public. Not just AIG was in trouble due to their fault, from their own lazy doing diligence.

Sadly their ‘calculus’ is from market research with study groups that find people do buy into their posturing and bunkum, and actually will buy this. Only after they find some segment of people who will not see their deception, they will then spend the money to buy Super Bowl advertisements, print brochures, and set rates for agents at personal financial advisor wealth management storefronts doing the actual culling of the gulls. Of course that is an operating expense using other people’s money drawn from fees on premiums, massively ever higher premiums, to cover their ambitions from lack of investment earnings on investing those premiums using conventional portfolio management mantras that never deliver. No news here, they know this2.

Yes this is the sadly real world of the Finance, Insurance and Real Estate (FIRE) industry that wastefully manages 80% of our wealth we have earned from stolidly working away at jobs when we find them. Their business is razing your household wealth, paying premiums their lawyers will prevent you collecting. It smartly resembles the world of state pensions we have paid into over lifetimes comprises another 10.5% of our paystubs we never get to hold and be ‘adult’ with.

That is even more, near triple, the $45 a month imprudentially thrown in the ‘blue box’ paradigm above. In the latter case of their ‘selling quarters for dollars’ we are not required by legislation for recycling our cache in government run pensions with lesser fees taken on them than the rest of the FIRE industry. But, these public pension funds are as underfunded as the private sector, worldwide3. It is stark reality public pension funds are underwritten by government budgets as a fiscal liability which will restrain all other programmes from, highway infrastructure, and oil industry subsidies corporate welfare; healthcare, and social programmes; to, Supreme Courts we rely for maintaining rule of law. Private pensions have no such protection.

Those ‘blue-box’ dominoes have sold a Harvard career of economist and best-selling author, Daniel Gilbert, for his asking bystanders how much money they had in their pockets, pan-handling bylaws be damned. He then demonstrates how much that amount, $45 represented by a domino ($1), for 30 years would grow into if saved on a “monthly basis," to demonstrate the $1(") domino topples a 30 foot tall (360 inch)? Consider the volume of ‘money’ that presumes will be your supposed nest egg in retirement, from a 1x0.5x0.1” domino starter (0.005cu-in) becomes 360x180x36 =466 560 000. That 466 560 000:1 supposition alludes a growth rate of, Σ�(1 + ����) + (1 + �����) + ⋯ (1 +� ) + (1 + �)) = 466 560 000, the sum of all those x monthly attributions of interest earned, then

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Page 3 of 4

February 2016 © Copyright StockTakers, All Rights Reserved. Copying Prohibited. The author does not provide investment advice. In order to use reproduce or convey the material herein,

in any way, written agreement must be obtained from the author or its agent Architypes Inc.

StockTakers Limited is an Alberta corporation providing information on “likeables” equities.

StockTakers Limited encourages your seeking tax law advisor for capital gains tax dispositions.

Man Bites Man! Dominoes in The Park.

x = 4.79 % per month compounding, an outrageous lie. Professor Gilbert, the economist, has no grasp of the mathematics, or he has trusted the actuaries of Prudential do. Let them explain how $45 x 52 x 30 years to retirement expands $16,200 to yield $20,995,200,000 so each dollar invested becomes 466 560 000. Well literally they are asserting 75.52% IRR that you are meant to grasp.

While there is truth in advertising, ‘all the blocks toppled – for a new Guinness record’ apparently not in respect to their smoke and mirror screening of retirement investment schemes those advertisements promote, from skilled actuaries’ minds. It is not about mathematics. It is about veiling constructive lying. No wonder the FBI has had open files on 2/3rds of CFA’s4.

We have shown such an outrageous gain5, in specific market conditions using options strategically to frame the holding and exiting positions in a margin portfolio. We do not expect such unusual pattern is common. But, such situation will never arise unless you are engaged in the market at all times, baited, angling, and waiting for the lunkers to rise is ancient wisdom6. That requires attentive concentration the small investor cannot afford. We advocate in our public portfolios just stoploss settings that like Canute resist the negative pressures of those self-proclaimed market makers who are just gambling, without any direction as our Risk Price provides.

Knowing where you are, having a milestone to guide your way7, is what the Risk Price provides the investor. Like having a place to stand was Archimedes strong point. Knowing, is the fundamentally important point of Risk Price. One knows something relevant, both reasoned and reasonable, about the worth of the stock one is holding or buys into one’s investment portfolio. That is instead of something projected as shadows on the cave wall by convention8. Their sales-pitch cymbals and noise signify absolutely nothing. Do not put your cache in coin-tossers.

In your portfolio always have at least 8 equities, but 20 will tend closer to our demonstrated average, result for the long term. We do rely on a distribution. Our method is not pinning-the-tail-on-the-mule. What it lacks is not robustness of tendency, 2:3 is profound tendency, but the market makes and chooses the price it is willing to pay to earn an income. We just have the necessary guidepost of where the equity sits in relation of its worth SF, the Risk Price,9 to the market determined stock price SP. Equities that are ‘likeables’ where the SP is greater than the SF.

We like Capital Safety and Liquidity because we have proven our risk averse method works, consistently obtaining both low risk and AlphaSmartTM high long term gain. Our Risk Price is what investors must know to defend their capital. Market behaviour prefers the “likeables” trading above Risk Price and bids up their price. Our method is proven. Because we can, you can10.

In our Modal Geometry11 theory of the firm we make only two assumptions, clearly as follows:

1. there is a balance sheet of the firm (that the rule of law governs its information is possibly weak assumption but at an accuracy to at least the modest degree accountants are prepared to be responsible for); and,

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Page 4 of 4

February 2016 © Copyright StockTakers, All Rights Reserved. Copying Prohibited. The author does not provide investment advice. In order to use reproduce or convey the material herein,

in any way, written agreement must be obtained from the author or its agent Architypes Inc.

StockTakers Limited is an Alberta corporation providing information on “likeables” equities.

StockTakers Limited encourages your seeking tax law advisor for capital gains tax dispositions.

Man Bites Man! Dominoes in The Park.

2. the firm will vigorously negotiate, “what it owns” (in order to stay in business “what is owed to it” with “what it owes” and vice versa, to make the best of what it has, that is in its trading connections).

The Modal Geometry theory of the firm has unfolded by rigourous observation of corporate ledgers relation to balance sheets as business process12 adds value with its trading connections. That is aided with logic, epistemology, and some powerful mathematics. You have proof in our ABC-ZTM , Solo50K-BlackSwanTradingTM, TaxCharity TM , TaxCharit€TM and BookBuilderTM public portfolios results. Because we can, we do.

Our reasons for having any equity in our portfolios are clear, concise and consistent. The equities we hold are Risk Price driven “likeables” showing clear tendency to gain 67% of the time. We do not make stock prices but can reasonably respond to stock price tendencies, by our knowing the price of risk, the downside, and buying and holding accordingly. That is new fundamentals from theory we have put into policy obtaining 26% IRR average in the long term. Know What You Have. Have What You Know Our view is risk averse. Of course we require a fee for doing that. Mail or call us for our help. Hans Goetze, Architypes Inc and StockTakers

Head Office

76 Midridge Close SE

Calgary, AB

T2X 1G1

7 Balsam Avenue

Toronto, ON

M4E 3B3

351 Chemin Boulanger

Sutton, PQ

J0E 2K0

450 538-1270

1 http://www.bloomberg.com/news/articles/2010-07-28/fallen-soldiers-families-denied-cash-payout-as-life-insurers-boost-profit

2 http://www.slideshare.net/HansGoetze/fearful-fund-fantasies

3 "in almost all firms, 30 to 50% of the capital required to meet the commitments made ... is missing.”

https://en.wikipedia.org/wiki/Pensions_in_Germany#cite_note-7 http://www.bloomberg.com/news/articles/2012-02-28/ge-to-

3m-pension-pain-mounts-as-fed-rate-policy-boosts-company-liabilities; https://www.wsws.org/en/articles/2010/11/nylo-

n19.html; http://www.rollingstone.com/politics/news/looting-the-pension-funds-20130926 ; 4 http://www.slideshare.net/HansGoetze/judge-by-company-they-keep

5 http://riskwerk.com/2013/08/10/the-sp-tsx-hangdog-market-3/

6 http://www.luminarium.org/renascence-editions/berners/berners.html https://en.wikipedia.org/wiki/Juliana_Berners

7 http://www.slideshare.net/HansGoetze/orienteering-among-magpies

8 http://www.slideshare.net/HansGoetze/four-horses-of-portfolio-apocollapse

9 http://riskwerk.com/2012/08/26/the-price-of-risk/

10 http://www.slideshare.net/HansGoetze/the-grail-and-the-goat-portfolios

11 “The Modal Geometry of the Firm and the Balance Sheet Worth of the Trading Connections”, 2006,

12 http://riskwerk.com/2014/03/15/pi-the-process/