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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: a.handbag. who wrote (4863)	11/15/2002 1:26:59 PM
From: Peter W. Panchyshyn	Respond to of 11633

I don't like DRIPS because you could be chasing performance, which is the worst strategy of all. ----- DRIPS maybe the only way joe average has as his best strategy. Remember joe average may not and probably doesnt have the time to do a proper due diligence. He most probably doesnt even know where to begin to look for answers of what to buy and even when to buy. Under those circumstances DRIPS are his only and best strategy. When it comes to accumulating for income chasing performance is not an issue or a concern. Sticking to or with a proven past performer means that it has weathered the lows quite successfully because it comes back from its lows cycling then to its highs . As the past cycling of these trusts show is fact because the past numbers clearly show they have done that not just once but over and over again year after year after year. ---- My own rudimentary rule of thumb is always to lower my average cost with new purchases. ----- And rudimentary it is because you show no way to guide those new purchases. While I agree that lowering ones average cost is ideal. Ideal doesnt tell at what levels or by how much. We have seen cases here where people have bought with no notion of where the unit prices (highs or lows) are. Only to cry fowl because it has gone even lower and then not being able to take advantage of the lower prices because they have tapped themselves out. And their crying always is the same to blame the trust (unit price movement) for what they did. Well when you invest by way of no guides (real hard numbers ) that is inevitably happens.---------- ------- Also we have seen those who spread themselves too thinly across too many trusts that they cant possible take advantage of the lower prices in any one when they come about. Instead of sticking to a proven past performer they have to chase after the new , the one getting the most hype or getting the most attention. ---------------------