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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (24722)	10/30/2002 3:00:51 AM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Hello Snowshoe, <<I can't invest in exotic things like CDMA and yen-denominated fertilizer plants. Mutter, mutter.>> then I guess Chinese banks, Russian oil companies, Zimbabwe mines, and Pakistani power stations are also out of the question ;0? Chugs, Jay

To: Snowshoe who wrote (24722)	10/30/2002 10:47:49 PM
From: energyplay	Read Replies (2) \| Respond to of 74559

Hi Snowshoe - I have a similar problem. It's really tought to be a fiduciary right now, with stocks blowing up, P/Es till too high, and short term rates really low. Here are a few suggestions- On the Equity side - Shell oil, RD, pays about a 3.5% dividend at current prices. Natural gas royalty trusts - see the web site www.mcdep.com for more detailed info. Look at San Jaun Trust SJT, HGT, and CRT. These pay out monthly based on the price of gas after a 3 month delay. Payouts run 6- 9 %. Payouts will be increasing this winter as the price of gas rises. There are also Canadian NG trusts. Look at ERF and NCN. Also there is a discussion thread on SI called Candian Reits and trusts. Also on the equity side, utility stock s have ben hit very hard. You may want to look at Tampa Electric TE or El Paso EP. Dividends are now about 9%, and the stocks are recovering. Discussions and information on these can be found on SI at Big Dog's Boom Boom Room. Also on the Equity side you might want a small slice of a gold stock or two. Newmont NEM , especailly below about $28, is an insitutional favorite. With the current low interest rates, and the FED creating money, inflation is likely to be a future problem - that's why the energy and gold emphasis. Bond side - Look at TIPS, the U.S. treasury inflation protected securties. Pimco Real return (PRRDX I think) has these, there is also a Vanguard version. Duration is pretty long, so you will have so sensitivity to rising interest rates. For non-U.S. Bonds look at the BEGBX from American Century bond fund which has high quality Euro and Pound sterling bonds, mostly governments. RPIBX from T.Rowe Price is similar but a little more volitile. This give you some protection against a falling dollar. Yield is about 4-6 %, Duration is medium. Also, the ECB is expected to bring rates down - another positive. Also, there are now exchage traded bond funds, like LTR, which have very low expenses. Beyond that , look at some of the closed-end bond funds, especially if you need muni bonds for a taxable account. Barron's has a Closed end table every week, and Mornigstar has some good info, you just have to dig around to find the closed end part of morningstar. Just don't pay a big premium to NAV. What you are doing is difficult in today's environment. Best Regards, energyplay