ยป Dead Trust Bounce
Last fall Canada’s New Government decided that seniors, although they’re the only ones who vote for the Conservatives, would no longer be exempt from taxation. And so income trusts were all but destroyed. A week or two after the crash of that sector, I said to myself “this crowd is mad”, and bought a small amount of income trust aggregate* to back up my theorizing.
Today the TSX hit a record high, and the rising tide has finally floated the corpse of my trusts to profitability! Of course it’s nowhere close to making up for the opportunity cost, but I’ll still accept it as vindication. I think I might go see if they need any help with the Wall Street sequel…
* Also good as concrete mix.
Awesome. That’s exactly the right idea with ownership interests in my book: “be fearful when others are greedy and greedy when others are fearful” (Warren Buffett).
Buy Union Carbide after Bhopal. Buy Exxon after the Valdez spill. Buy Philip Morris, as I did, after the Engle verdict.
Jared’s actions were far, far more ethical. He might be interested in this. For the record I think the income trust rule-change was for the best, even if Bell forced the government’s hand.
Our firm’s clients lost, in aggregate, about $5 million because of that law. One guy in particular lost around $750,000 that day. You better believe he wrote his MP.
Jack
8 May 07 at 1:20 am