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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks

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To: a.handbag. who wrote (3408)6/11/2002 2:20:48 AM
From: Lorne Larson  Read Replies (2) of 11633
 
The powers that be still don't like trusts, although they've certainly become more "respectable" over the last year.
I'm still not sure about the reason for the dislike. On a total return basis they've easily outperformed just about every segment of the market, and it's starting to reach the point where people are questioning the objectivity of analysts who refuse to consider them. We're talking about free cash flow here, which is a concept that many analysts, including the renowned Peter Lynch, have spent a lot of time talking and writing about.

I predict that if interest rates stay low for another year or two, the good trusts have another 50% in capital appreciation. It's absolutely nuts that you can get over 10% on a lot of high quality trusts, when 5 year bonds are getting you 5%. Go to the bank and borrow money at 4-6%, buy trusts and get 10-12% plus some possible capital appreciation. What am I missing here?
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