A Horse With No Name,
This is truly a heartache, and I have been prevaricating over what to do all day, but I now see the risk that came with the high yield.
Firstly, if the trusts gap down at the open it may be too late to exit. Given the radio shows telling people to sell trusts this weekend, this is a distinct possibility.
If I can exit, my initial reaction is to lower my total trust exposure by at least 1/4 up to 1/3. As my largest position is COS and I am keeping that, this will mean many of my other oil and gas trusts will be liquidated. I will keep some of the trusts w/ exposure to oil sands like PES, PHX, CET and WJX. I will keep VET for int'l, keep FEL.UN because I simply respect that company too much. I'll sell HTE and a few others.
I will keep PDS, FDG and ERF calls and hold my FDG Puts (if I'm putted I will decide what do so then).
Initially I will move to more cash, ultimately I want to increase NG positions and oil sands, as well as diversify a little into int'l high yield names.
Over time, I may replace gassy Canroys with gassy US trusts HGT, SJT maybe CRT and MTR if I don't buy the Canadians back.
mcdep.com
(all have next 12 mo yields of 10-12%)
I manage accts for others and will do the same there, increasing cash positions in all as the gov't has chosen to do this just as other high yield stocks and US trusts are in the middle of a run, so not many good entries.
Best of luck to us all, David |
