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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: SG who wrote (61433)	2/23/2010 10:18:13 AM
From: Cogito Ergo Sum	Respond to of 217591

I have been building a portfolio of Canadian yield.. FTS, TRP, ENB, HSE as examples.. ( alist of trusts on the list for post conversion end of this year) was 90% yield but lightened the riskier ones considerably a while back raising my cash levels high.. Nevsky suits me OK though I understand your point.. I cannot trade my entire PF... like mogul skiing for an elephant :O), especially with multiple accounts.. So I continue to accumulate yielders but trade a good portion in one account.. Short long every which way.. presently quite short miners and energy on the Toronto exchange,, (and the Toronto Exchange).. TBS

To: SG who wrote (61433)	2/23/2010 1:45:59 PM
From: elmatador	Respond to of 217591

Sovereign-debt theories Domino theory ... A sudden loss of confidence in all sovereign debt, and especially in American Treasuries, the world’s benchmark “risk-free” asset, would have calamitous consequences in a still-fragile recovery. Equally, an exaggerated fear of sovereign risk could prompt governments into premature fiscal austerity, which might itself push the world economy back into recession. ... If Greece’s plight shows that investor sentiment can change quickly and Japan’s history shows that it need not, where do other sovereigns stand? So far low yields have vindicated the sanguine view for all but those on the very edge of the euro zone. But there are three reasons to believe that could change. The first lies in the strength of emerging markets. A gradual reorientation of their economies towards domestic spending will slowly reduce the global supply of savings, even if rich-country growth remains weak. Other things being equal, that ought to push up the cost of capital. At the same time rapid growth means most emerging economies’ sovereign-debt ratios, already much lower than those in the rich world, will fall. True, rich countries can point to a far superior payment record. Over the past 50 years sovereign defaults have been confined to the emerging world. But the definition of what is a “safe” borrower could shift, benefiting Brazil, say, and hurting America and Britain. economist.com