Well I'm in a good mood this morning as I see our futures in the US are up, a beautiful rebound in the Japan last night, My China funds don't quit running and that great Brazil news about no more taxing on capital gains and my long Brazilian BONDS yielding +14% and the REAL ( brazil currency ) strength last week to the dollar. ( a double whammy to the upside) Best bonds I have ever owned!!! except maybe in the early 80's but who remembers that. It's all about what have you done for me now kind of game we play. (My Portfolio is 25% US and Canada, 18% Brazil, 22% Japan, 30% Europe( DAX and FTSE indexs mostly) and 5% Austrailia Anyways just going to Suggest what I have been doing in Canada for a year or two now. FDG Canadian coal trust yielding 14% and have been dripping the dividend gains anytime it dips. Same with PTF Petro fund (oil trust yielding 12+%) and they pay MONTHLY dividend of .17c a share but that just increased to .20c a share for the next three months. PTF in 2004 paid out 71% of net income in divs, but 2005 they only had to pay out 53%of net income to meet there div payouts. This is huge for a trust. got more than 10 yr's of proven reserves for 10 consecutive yr's. They Keep buying and increasing their Canadian reserves. ( Been buying recently Wed. to be exact at 18.10 you gotta love limit orders) it was a stale bid for over a month but it finally hit!!! If anyone else out there is dripping this one you gotta know how this feels. Its GREAT... Well look into this It's a great source of income (if you need it) or to drip it for us old FARTS. Only complaint taxes are a bitch with the 15% canadian foreign Investors tax, But a good CPA and well you get the idea. Lets hope the retailers don't screw up this great day for the longs I'm callin it. DOW touches 11150 and I'm happy.
Going into HTE soon---like tomorrow if oil is down ( Canada Oil Trust) 75% oil 25% gas---11% yield Oil trust this is the time to start loading up on income producing stocks. We all know this rally is going to be sold off and corrections are coming(S&P is at top of trading range), and VOLATILITY in this market will be increasing soon. It's going to be a stock picker's year like it was last year. For those of you who got +45% return for the year 2005 (NOT TOO MANY OF YOU OUT THERE) Just check out the ^VIX bottom 2 days ago. For those out there who like to buy and hold while paying attention to entry and exit points. These trust are perfect for a nice way to still feel like your in the game trading. Just this way every month when you get your BEAUTIFUL Div. look for a Market timing action before next Ex- Div. day and Drip your income when you want to. Buying 400 shares near open and 200 more every .33c it drops until I have 1600 shares Other Canada Trust I own include PTF, FDG, PWI (All of which yield 12+% today but for me its close to 19+% because I was in these over a year ago) Trust pay the bills when needed, (phone, gas, energy, health ins., kids college rent, kids college tuition, and the wife's Shopping expenses, and still have income to DRIP, I see these as the ultimate make my life easy way to live!!! You can trade all you want, mess with the momentum of great stocks like GOOG and APPL and all the other (Investing)/trading/gambling stocks you want ( IT's your money call it what you want), But markets go up and markets go down and nobody I mean nobody is right even 80% of the time, But DIV's are always there coming in Every month or Quarter and I always feel like I'm winning when thay are paying for my lifestyle. 1 and a half Year Trust Performance = OVER 90% RETURN including DIVS and DRIP (for the 15% of my portfolio in energy trust PTF, PWI, FDG)
Put on half my position in HTE Here's a good 5 yr profit assumption on this energy trust. with a modest .15c increase in equity every month and a stable Div payout. Our oil will be coming from CANADA if all hell breaks out over there Look at my other post at Forums--trading for a living --Journal--want to share $COST AVERAGE MAN
Have you considered the new iUnits trust index ETF? Ticker is XTR, traded on the TSX. Seems like a lower risk way to invest in trusts, and the MERs are extremely reasonable.
I didn't know about it, I will look into it, takes away the frim specific risk , like piss poor hedging i have seen in this industry.
I mess around with my discretionary $ in those energy trusts as well as SOME domestic Hi Yield ones. You only have to be in them one day a month(the ex day) to get the whole months dividend. I take a position with limit orders a day or 2 before ex day and watch them, grab the dividend and then get out with a small profit above breakeven, a day or two after the ex date. Since I don't understand the bond markets as well as I should and because the whole energy market is so news-sensitive, this is my way of risk managing the process. With TS and it's penny a share commisssions, this is very doable. Yeah I miss some big moves but my low tolerance for risk is the result of some pretty scarey drawdowns in accounts that are at this time of my life, very hard to replace. The one extra fancy (LOL) move I do with the whole lots is to watch the daily charts on all the ones on my watchlist and buy any of them when they drop below 10 on the RSI(2) Daily, then set a sell order 10 or 15 cents above my entry, including commissions. It's a pretty simple way to trade but my old head is a slow learn and I don't have the formal educations many of you have. Works for me..........