Comments on: Diversify, Diversify, Diversify http://www.canadiancapitalist.com/diversify-diversify-diversify/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Kevin Malone http://www.canadiancapitalist.com/diversify-diversify-diversify/#comment-58113 Kevin Malone Wed, 25 Jul 2007 21:42:28 +0000 http://www.canadiancapitalist.com/2006/11/03/diversify-diversify-diversify#comment-58113 Yes, quite right...but some of the trusts are now higher than they were before the flip-flop, because the fundamentals were solid and remain solid even with the tax changes (even a boob like me can figure out from the available information which of the trusts are dealing in vapour rather than distributing reasonably). People have the right to be angry about the policy flip-flop but it is their own fault if their losses (or the majority of their losses) have to do with buying based on yield only rather than fundamentals. Yes, quite right…but some of the trusts are now higher than they were before the flip-flop, because the fundamentals were solid and remain solid even with the tax changes (even a boob like me can figure out from the available information which of the trusts are dealing in vapour rather than distributing reasonably).

People have the right to be angry about the policy flip-flop but it is their own fault if their losses (or the majority of their losses) have to do with buying based on yield only rather than fundamentals.

]]> By: Loki http://www.canadiancapitalist.com/diversify-diversify-diversify/#comment-11475 Loki Mon, 06 Nov 2006 19:31:47 +0000 http://www.canadiancapitalist.com/2006/11/03/diversify-diversify-diversify#comment-11475 Sorry to hear about your losses....BUT..... #1 - It's no surprise that politicians break promises. Yes, even the Conservatives do. #2 - People buying these trusts were just chasing a yield without doing any research. #3 - Income trust cash flow just isn't sustainable nor are the yields. #4 - The valuations on some of these income trusts were just crazy - I mean c'mon! Sorry to hear about your losses….BUT…..

#1 – It’s no surprise that politicians break promises. Yes, even the Conservatives do.
#2 – People buying these trusts were just chasing a yield without doing any research.
#3 – Income trust cash flow just isn’t sustainable nor are the yields.
#4 – The valuations on some of these income trusts were just crazy – I mean c’mon!

]]> By: Phil S http://www.canadiancapitalist.com/diversify-diversify-diversify/#comment-11459 Phil S Mon, 06 Nov 2006 14:55:41 +0000 http://www.canadiancapitalist.com/2006/11/03/diversify-diversify-diversify#comment-11459 Hey Everybody. This morning's Globe & Mail website just published an article which contains excerpts of the same stuff I read about with the US private equity firms being interested in the beaten down income trusts. Check it out! http://www.globeinvestor.com/servlet/story/RTGAM.20061104.wxr-cover04/GIStory/ As I talked about in an earlier post, if these income trusts are taken private, it will eliminate the tax revenue that the greedy hands of our politicians were trying to grab anyways. For me, misery loves company. Hey Everybody. This morning’s Globe & Mail website just published an article which contains excerpts of the same stuff I read about with the US private equity firms being interested in the beaten down income trusts. Check it out!

http://www.globeinvestor.com/servlet/story/RTGAM.20061104.wxr-cover04/GIStory/

As I talked about in an earlier post, if these income trusts are taken private, it will eliminate the tax revenue that the greedy hands of our politicians were trying to grab anyways. For me, misery loves company.

]]> By: Canadian Income Trusts Tax Melt-down » Investments + Editorials: Dissecting the good, the bad, and the ugly of investment / financial media! http://www.canadiancapitalist.com/diversify-diversify-diversify/#comment-11453 Canadian Income Trusts Tax Melt-down » Investments + Editorials: Dissecting the good, the bad, and the ugly of investment / financial media! Mon, 06 Nov 2006 13:09:50 +0000 http://www.canadiancapitalist.com/2006/11/03/diversify-diversify-diversify#comment-11453 [...] Canadian Income Trusts Tax Melt-down Let’s face it, most investing decisions are made as easily as throwing a dice. I’vebeen told that I have a pretty hot temper, so I make it a point not to jump into things when it comes to investment decisions. This explains why I haven’t covered the recent Canadian Income Trusts melt-down like some of my peers have. There’s been some excellent discussions brewing. Almost a week has past, so here’s my perspective. [...] [...] Canadian Income Trusts Tax Melt-down Let’s face it, most investing decisions are made as easily as throwing a dice. I’vebeen told that I have a pretty hot temper, so I make it a point not to jump into things when it comes to investment decisions. This explains why I haven’t covered the recent Canadian Income Trusts melt-down like some of my peers have. There’s been some excellent discussions brewing. Almost a week has past, so here’s my perspective. [...]

]]> By: steven zussino http://www.canadiancapitalist.com/diversify-diversify-diversify/#comment-11412 steven zussino Mon, 06 Nov 2006 00:35:50 +0000 http://www.canadiancapitalist.com/2006/11/03/diversify-diversify-diversify#comment-11412 I still think investment in real estate tops any in the stock market. I was not in shock of the anouncement of the income trust changes. This is a reminder that diversification is key but since I am under 30 and have a lot of room for mistakes it is easier to do. I still think investment in real estate tops any in the stock market. I was not in shock of the anouncement of the income trust changes. This is a reminder that diversification is key but since I am under 30 and have a lot of room for mistakes it is easier to do.

]]> By: Phil S http://www.canadiancapitalist.com/diversify-diversify-diversify/#comment-11367 Phil S Sun, 05 Nov 2006 13:50:56 +0000 http://www.canadiancapitalist.com/2006/11/03/diversify-diversify-diversify#comment-11367 Hi Bob. As an environmentalist, I have to strip away my personal feelings about the oil and gas industry (the more we spend on alternative energy sources the better, in my opinion). But the tax incentives that they provide through the limited partnerships and income trusts is the only way that they are able to attract private capital to exploration and development. The government receives so much in royalties and other taxes that applying corporate tax on top to these businesses will kill all future incentive to explore and develop. Most exploration is a total crapshoot and why would you risk losing 100% of your investment if the government is going to grab 35% of your profits afterwards? I know environmentalists are all painted as socialists and commies by the media, but I strongly believe that the less government intervention in capital markets the better. I feel personally insulted each time when the government thinks they know how to make better investments than me (eg. by giving handouts to Ford Motor Company), and the same goes as far as charitable giving as well. They only give us a measly 17% or 29% tax credit on charitable giving and meanwhile they invest billions of tax dollars on social programs which are usually eaten up by salaries to government bureaucrats! I believe that the government should stop all of their social program spending and give us taxpayers a 100% tax deduction for charitable giving. I think Canadians have bigger hearts than most people think - it's just our tax laws that keep us from loosening our purse strings. But nobody listens to me (sigh). Hi Bob. As an environmentalist, I have to strip away my personal feelings about the oil and gas industry (the more we spend on alternative energy sources the better, in my opinion). But the tax incentives that they provide through the limited partnerships and income trusts is the only way that they are able to attract private capital to exploration and development. The government receives so much in royalties and other taxes that applying corporate tax on top to these businesses will kill all future incentive to explore and develop. Most exploration is a total crapshoot and why would you risk losing 100% of your investment if the government is going to grab 35% of your profits afterwards?
I know environmentalists are all painted as socialists and commies by the media, but I strongly believe that the less government intervention in capital markets the better. I feel personally insulted each time when the government thinks they know how to make better investments than me (eg. by giving handouts to Ford Motor Company), and the same goes as far as charitable giving as well. They only give us a measly 17% or 29% tax credit on charitable giving and meanwhile they invest billions of tax dollars on social programs which are usually eaten up by salaries to government bureaucrats! I believe that the government should stop all of their social program spending and give us taxpayers a 100% tax deduction for charitable giving. I think Canadians have bigger hearts than most people think – it’s just our tax laws that keep us from loosening our purse strings. But nobody listens to me (sigh).

]]> By: Bob http://www.canadiancapitalist.com/diversify-diversify-diversify/#comment-11335 Bob Sun, 05 Nov 2006 06:02:24 +0000 http://www.canadiancapitalist.com/2006/11/03/diversify-diversify-diversify#comment-11335 It's really hard to agree with the comment that Mr. Harper broke a promise. The entire picture has changed since BCE and Telus announced their intentions. It has also become a distinct possibility that big oil and even the banks could be looking to convert. Bob It’s really hard to agree with the comment that Mr. Harper broke a promise. The entire picture has changed since BCE and Telus announced their intentions. It has also become a distinct possibility that big oil and even the banks could be looking to convert.

Bob

]]> By: Phil S http://www.canadiancapitalist.com/diversify-diversify-diversify/#comment-11320 Phil S Sun, 05 Nov 2006 02:24:17 +0000 http://www.canadiancapitalist.com/2006/11/03/diversify-diversify-diversify#comment-11320 Hi CC. Although I initially lost 10% of my net worth, I'm still above water with respect to my original cost basis and you are all right, it has been rebounding a bit since the Nightmare On Halloween. So, I certainly don't need any pity, but the fact remains that I'm still pissed off about the flip-flopping and I'm not soon to forget it. Unfortunately, all of the political parties seem to support the legislation, so I can't even throw in a protest vote at the next election. Maybe I can convince the leader of the Marijuana Party to get rid of the recent income trust taxation legislation. I'm sure they won't be hard to convince, I'll just hold a bunch of snacks in front of them after they've been toking up. You want this? Then get rid of the tax on income trusts! Hahaha!!! Hi CC. Although I initially lost 10% of my net worth, I’m still above water with respect to my original cost basis and you are all right, it has been rebounding a bit since the Nightmare On Halloween. So, I certainly don’t need any pity, but the fact remains that I’m still pissed off about the flip-flopping and I’m not soon to forget it.
Unfortunately, all of the political parties seem to support the legislation, so I can’t even throw in a protest vote at the next election. Maybe I can convince the leader of the Marijuana Party to get rid of the recent income trust taxation legislation. I’m sure they won’t be hard to convince, I’ll just hold a bunch of snacks in front of them after they’ve been toking up. You want this? Then get rid of the tax on income trusts! Hahaha!!!

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/diversify-diversify-diversify/#comment-11286 Canadian Capitalist Sat, 04 Nov 2006 17:27:17 +0000 http://www.canadiancapitalist.com/2006/11/03/diversify-diversify-diversify#comment-11286 Phil: I am very sorry to hear about your losses. I also totally agree that Mr. Harper broke a promise he made before the election. The government could have given more of a grace period for existing trusts instead of the current 4 years. If you have high quality trusts you might still come out ahead. CIX.UN was up almost 4% on Friday. Phil: I am very sorry to hear about your losses. I also totally agree that Mr. Harper broke a promise he made before the election. The government could have given more of a grace period for existing trusts instead of the current 4 years. If you have high quality trusts you might still come out ahead. CIX.UN was up almost 4% on Friday.

]]> By: TonyR http://www.canadiancapitalist.com/diversify-diversify-diversify/#comment-11245 TonyR Sat, 04 Nov 2006 04:34:14 +0000 http://www.canadiancapitalist.com/2006/11/03/diversify-diversify-diversify#comment-11245 I can say I like the move. Tax avoidance and cheap profits for foreign investors notwithstanding, I like dividend stocks and was getting annoyed that my watch list was dwindling as companies converted. Besides, the change isn't a problem, it's a opportunity. My one trust dropped so far that instead of selling, I bought more. +12% later it's still creeping up and will pay an averaged 14+% while it does so. (Yes, it's stable. It's the dominant paper in my city but small on a national scale.) I can say I like the move. Tax avoidance and cheap profits for foreign investors notwithstanding, I like dividend stocks and was getting annoyed that my watch list was dwindling as companies converted.
Besides, the change isn’t a problem, it’s a opportunity. My one trust dropped so far that instead of selling, I bought more. +12% later it’s still creeping up and will pay an averaged 14+% while it does so. (Yes, it’s stable. It’s the dominant paper in my city but small on a national scale.)

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