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


To: Cogito Ergo Sum who wrote (49531)5/5/2004 10:04:50 PM
From: Taikun  Read Replies (1) | Respond to of 74559
 
I wonder how vulnerable these trusts are to inflation?

US inflation leaks to Canada, the US's major trading partner

Equipment, materials, labor, financing (Canadian $ weakens?), distribution costs impact margin on producing oil

Stock price tanks in market selloff but yield rises both in nominal (ie 12% dividend becomes 24% as stock halves) and real terms (despite higher production costs high price of energy leads to higher dividends)

In the end, massive inflation I suppose could render the yield somewhat valueless. Anyone with in-kind dividends? I need about 40 gallons a month for the car...