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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (31362)	7/21/2008 4:26:06 PM
From: E_K_S	Read Replies (2) \| Respond to of 78658

Hi Paul - Added to my ERF position and sold my XLE. I bought XLE as a tracking stock for OIL and integrated oil stocks but it has not performed that well. I think the hedge funds and speculators trade this index and as a result it seems to move more on speculation than on intrinsic value. It is nice to have the dividend stream paid monthly from ERF and their growing oil and natural gas reserves makes the intrinsic value of the company worth more. I am finding that I can do much better by buying individual company stocks than buying the ETF equivalent sector shares. ============================================================== I have been looking into foreign currency denominated bonds, specifically those located in Australia and Brazil. I am trying to extend my foreign diversification of stocks (w/ ADRs and Canadian Energy Trusts) into bonds. I am looking at AAA corporate and/or Gov Agency short term bonds that are denominated in other currencies w/ higher yields. The transaction costs are not as high as buying stocks on foreign exchanges. The value proposition is a better overall coupon yield and a small hedge for the portfolio against a falling U.S. dollar. Three year Australian Gov. bonds (that yield around 6.25%) look interesting but my Schwab bond team is still researching my request. Have you explored investing in foreign currency denominated bonds? EKS