svosavvy

Commodities for Income Investors

I would argue that anything that isn't a dollar is a hedge against inflation as long as you don't overpay. So get out there and spend, wow, I guess the stimulus really will work, it's almost like being held at gunpoint. I was cautious for months about further deflationary risk, I feel since the stress tests passed with no time bombs I am ready to look at deflation in the rearview mirror. I agree that the stress tests weren't hard enough, I haven't seen that many passing grades since basketry class. Well, if it helps people sleep at night.

Commodities for Income Investors

Always interesting thanks,

As to your vehicle hedge, and real world arbitrage. Why not go for a 5 year old honda that you can get for peanuts and gets great mileage. You have to burn a lot of gas to make up the spread, also if you front cash for the older one you can forego collision coverage, invest the insurance savings, pending that you believe in yourself as a safe driver. I totally agree with the penny saved tax truism. I always like it when you talk up pvx. A most important point about the volume showing up on down days. Being relatively young, I am in long term love with some of my march buys and have such hedged to the down by selling leap calls in a gradient fashion as to not run out of options powder. If called away it will be to the sound of doubles and triples, but, if we get a robust downturn it will be an easy buy cover. In the near term time gets to eat away at their value. Land owners like myself are going to get hammered with our eroding tax base. I Continue to collect the loonie, and hold timber on the stump a commodity that always grows despite market conditions.

Canadian Energy Trusts: The Best Long Term Income and Dollar Hedge? (Part 2)

Look, yeah nat gas sucks right now. I would look to the future, the cap and trade future. The current administration cannot fall on their sword on this one right now there's too much other stuff going on at the moment, but, they can use strong toothless language. The only alternative to coal right now is nat gas, I wouldn't be surprised to see a form of an inconvenient truce. One that says we (industrials) promise to pollute less (burn less coal and more nat gas.)

Canadian Energy Trusts: The Best Long Term Income and Dollar Hedge? (Part 2)

To clarify, "laws were meant to be changed" I meant that in the context of "rules are made to be broken"

Canadian Energy Trusts: The Best Long Term Income and Dollar Hedge? (Part 2)

I agree with cliff's latest comment, laws were meant to be changed. I take a wait and see approach, on 2011. Someone in gov't or lobbies may actually wake up to the idea that money would massively flow out if severe structural changes to the tax law were allowed to take place. I believe to the opposite of an above contributor about the USA mlp structure. I think that is a competitive model that canroy's may wish to peg themselves against as a viable competitive model. I would also add that a good management is priceless in these times, and would humbly add that it will be a real challenge to make money on oil priced in usd though increasing in price, may get offset by input costs priced in the cad which may strengthen in light of future usd weakness. Long canroys