Dear Friends,

It has been so hot here lately, and I mean hot. All over. Which brings me to the subject of water. It’s only a matter of time till we have to pay for this tasteless beverage. It’s necessary, I suppose that’s the best we can say for it. And it makes a great mixer with soda, ice, ginger and lime. But there will be a bubble in water one day, the salt sea kind, and dearies we have to be ready to ride the wave and bail before it crashes.

So here’s what we’re going to do. First of all, we’re not talking about water treatment plants, freshwater extraction from cactuses, or any other of the dream machines for engineers. We’re not talking about present tech or finding that elusive breakthrough that will send a company to the stratosphere. No, my lovelies, we’re talking here about public panic. One day the markets will focus all their energy on water and that’s our signal. We want 10% of our portfolios ready to sell for cash. And we throw it at any water business that’s rocketing upward. Don’t investigate the directors. Don’t check their balance sheet. This is projectile investing. Toss it into four companies that are part of the surge.

And when do we sell, me hearties? We sell 25% after we’ve made 25%, and a further 25% after we make another 25%. And so on. You place the automatic puts with your broker if you trouble with one, or watch the bids yourself. When you’ve made 100% on a quarter of your original investment, you’re out. You can sit back, knowing the bubble will burst, having made a round 50%. And, there’s more. With me, there’s always more.

Investors will be selling their good shares to toss into the water pond. As you sell your 25% holdings, you’ll have tremendous values to snap up. Figure that the water market is going to plummet and if you’re a gambler (which I definitely am not), sell short when the upward trend buckles. You’ll likely walk away with another 25%.

So there it is duckie, the 25% solution. The system works with any sudden, intense interest in a resource sector that has a rational justification. Remember the key words: sudden (working on emotion and greed), intense (creates the illusion that investors must act quickly), interest (focused attention on a small part of the market), resources (an objectively limited product), and rationally justified (don’t sweat whether the rationale is correct. Any rationale will lift a wave past the cut-off).

Go for it, darling. And see in St Trop.