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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (21747)	4/20/2003 5:49:11 PM
From: Tommaso	2 Recommendations Read Replies (1) \| Respond to of 206151

The Canroy distributions are in Canadian dollars, so any rise in those automatically raises the US distribution. Likewise, the stock prices adjust automatically with the change in exchange rates. The national bank of Canada is raising interest rates to prevent inflation. The US is doing nothing to prevent inflation. The US dollar is hugely overvalued and the trade imbalance is disastrous and increasing. If the Candadian dollar rises to par with the US dollar, Canadians will pay what they already pay for energy; US buyers will have to pay 50% more to buy that Canadian energy.

To: energyplay who wrote (21747)	4/21/2003 12:44:47 PM
From: Tommaso	Read Replies (1) \| Respond to of 206151

Another note on Canadian energy trusts. The US is currently running a current account deficit equal to nearly five percent of our GNP. Canada is simultaneously running a surplus of 3-4% of GNP.[CORRECTION: closer to 2% right now]. At some point this horrendous imbalance will result in a large decline of the US dollar against the Canadian dollar (and against most other currencies as well). This means automatic inflation of the price of anything imported--and the one thing we are most addicted to importing is energy. I am almost as confident that these Canadian energy trusts are a sure road to increased wealth as I was confident in 1999 that ownership of Internet and tech stocks was a road to poverty. I will continually reexamine the situation and the individual stocks and try to see what the truth is rather than what I want the truth to be. But the idea of getting up to 20% (or more!) return just hits me in the face. I also think that interest rates will be going up, and therefore bond investments are very risky, though I continue to hold a big position in mid-term Australian bonds via the FAX closed-end fund because of the high return and the possible appreciation of the Aussie dollar.