ikeone

Canadian Energy Trusts: The Best Long Term Income and Dollar Hedge?

starting buying ERF and PVX years ago, adding shares on weakness. From their highs, both have cut their dividends by about 70%, and obviously the lower they have fallen, the faster they cut. I have substantial holdings in both, and a combined loss of $60,000 on the shares. Adding insult, the Canadian dollar was at parity when I was buying the bulk of my shares, now it has weakened by about 20% against the US dollar...resulting in a further drop in actual $$$ from dividends. And, if you have any shares in tax deferred accounts, you also lose the 15% tax withheld by the Canadian government.
All I am suggesting is that there are unintended and unexpected events with most investments. Be prepared for them! Good luck.

CANROYs Remain Attractive as Oil-Related Investments

Most people spend most of their time following and commenting on absolutely useless factors. People will talk about how smart or experienced management is. People will talk about how great profits have been. People will talk about how “solid’ the balance sheet looks; or how many people live in Asia. These factors are all absolutely irrelevant to what is happening to our investment capital today or next week or next year. All that matters in real life is where we are at with in the cycle of prevailing market sentiment.

The market sentiment now is increasingly negative. And so it should be. We have been through a lengthy period of utter idiocy. People of all walks and areas have been ignorant and wilfully blind to the dangers that were mounting. Now they are suffering for their poor decisions. It is not easy or fun to watch but it is inevitable and cathartic and ultimately necessary to clean out the BS and set up for the next real demand driven expansion.

CANROYs Remain Attractive as Oil-Related Investments

After reading the article and subsequent posts here, I see a lot of investment approaches which could be characterized as "HOPE". However, the cycle favoring commodities has largely ended, and it will likely be 4 or 5 years before these investments show sustainable rises again like they did in the past couple years. About all we can "HOPE" for is bad weather and monthly payouts that don't shrink like the stock prices.