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

To: Spekulatius who wrote (34502)	5/16/2009 1:58:16 PM
From: E_K_S	Read Replies (2) \| Respond to of 78740

Hi Spekulatius - I too noticed that several of my utility and pipeline stocks sold off. I thought that with their steady dividends and many near their previous lows, these made good low risk value investments. My biggest concern looking forward several years is inflation and I do not think utilities provide a good hedge. Perhaps new money is thinking the same thing. I am looking at iShares MSCI Australia Index (EWA) ETF. They pay their dividend each December and is now yielding around 6%. More importantly the ETF basket owns a lot of natural resource stocks which should do well in an inflationary environment. This is also a $US dollar play vs the Australian $. If the $US dollar continues to be debase, the Australian $ should gain in value. Here are the top ten holdings in the ETF finance.yahoo.com The ETF is up over 40% since the lows of March, so I am looking for an entry point in the low $14 to start a small position. My strategy is to accumulate shares on any deep corrections and eventually sell an out of the money January covered call so I capture the annual dividend typically paid towards the end of December There is a Candian ETF but the dividend is only around 2%. EKS