Monday, September 17, 2012

A sugar high?

Fed Chairman Ben Bernanke ushered in another round of quantitative easing and the stock markets in Canada and the States made a nice jump. Still, the reasons for the announced QE are not in themselves positive economic indictors and the market may soon sour. I'm sitting tight and letting my dividends puddle.

LIM jumped but I didn't. I wish I had. I'd have taken my profits and returned to the sidelines a little richer. Today LIM gave back some of its gains. It closed today at $1.53. I have a gut feeling it could still test some new lows. I could be wrong but I'm patient. If it gets down into the $1.25 range, I will reconsider its purchase. I'd buy about 2800 shares and then sit tight. Someday, iron ore will be a darling of the resource crowd again and it would be nice to be dressed and ready to party.

CET closed today at $6.84. I'm really happy with its recent purchase. It can take a heck of a dip and not get close to the price at which I got into the game. I'm feeling fairly safe. I'm going to wait patiently for CET to get to $10. While I wait I'm going to enjoy a yield of almost six percent on my investment.

PWT also closed down a couple of cents but it is still pushing $16. I've still got some distance to travel before I get all my money back but my wife's investment in PWT is doing just fine. I advised her to buy when PWT was trading just above $13. She sold half in order to help pay for our kitchen reno. I will sell all my PWT when it gets above $19 and my wife will get rid of most of her holdings, too. Since she got into this stock at such a low point, she feels safe holding onto a small amount of this dividend cash cow.

Has REM changed it's name? I noticed an article about the "awkwardly named" ETF in the Globe and Mail and today I noticed the name is no longer awkward. It seems to be going by the moniker of "iShares Mortgage Plus E.T.F." I mentioned REM some months back and have been delighted with its performance ever since. Nice appreciation in value plus a nice double digit dividend. I got the best of both worlds. I believe the article I saw was by Rob Carrick. I wish I could say I was surprised that he took so long to discover REM, but Carrick seems pretty slow off the mark at the best of times.

Forgive me for any typos but I'm knocking this off in hurry before rushing out the door with my wife. Cheers and good investing!

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