Andy1234

High-Yield Canadian Royalty Trusts vs. Dividend Growth Stocks

I read most of the comments.


Remember that when oil prices increase (or the dollar decreases)....most of the price of oil is from the decline of the dollar....but I do think soon the fundamental price from peak oil may increase in real terms because of scarcity.

If the dollar decreases and the canadian loony increases....that just means the operating costs of the conroy's increase.....so I think the conversion argument it moot.

I like NG and oil stocks period.....they sell products that don't go out of style....and its simple to understand supply and demand. While prices might be depressed now.....the cost to produce oil is above the cost of oil right now....so new projects are not going to come online......this leads us to believe that oil will have to increase in the future....especially if inflation comes along raising the cost of production even further.

RIGHT NOW.....and the coming months are the time to pick up oil and NG producers......limited downside and great upside potential.

You buy when things look the worst for each sector......and you start buying conservative stocks like the author mentioned when the price of oil is much higher than the production costs of new oil coming online...and when inflation is running rampent...and a huge speculative bubble can be seen in housing;)