Last week I commented about the fact that the Canadian Energy Royalty Trusts were almost inexplicably dropping in concert. We attributed much of this phenomenon to the fact that profitable investments were being sold to cover losses elsewhere. With a correction in commodities now underway after this past weekend’s G8 meeting, it now appears that at least some of the action was in anticipation of the thesis that an effort to prop the Dollar and talk down oil prices was going to intensify.
My position? Talk is cheap. Action counts. Another verbal campaign will do absolutely nothing to fix any of the problems that have caused the high oil prices and disintegrating value of the Dollar. We have seen the selling reach fever pitch in the highest quality energy trusts pushing yields to incredible levels. I believe this is a unique opportunity and as such will analyze a number of the energy Trusts in this month’s Centsible Investor which will be out by July 15th. For more information, please visit:
http://www.suttonfinance.net/newsletter.php