trying2win
12-02-2003, 01:30 AM
Any PA members got an interest in the stock market? Anyone care to make some general comments about how they're making out in some of their stock market investments?
--As a Canadian, I've been investing in the stock market for about 25 years. Over the long run, I'm a loser at buying and selling individual stocks. Since it's the old proverbial cliche "Once stung, twice shy", needless to say, I very rarely buy indivdual stocks anymore. Have gotten a little cynical in that department. I compare buying individual stocks now, to someone trying to make a long term profit at a casino!
--There have been some positives for me in the stock market though, over the years. Mostly in the income fund section. Mortgage funds, bond funds...things like that. Over the last several years I tried something new. I invested in some income trust funds in the oil and gas industry, plus some in the power generation industry. Can't complain about the cash dividends these income trust funds have paid out every month since I bought them. Better returns than GIC's. Of course there is the risk factor...
While mortgage funds and bond funds may be LOW RISK funds, I realize they are not NO RISK funds. I've experienced the odd losing year with them, or low return years (next-to-nothing). Some years there have been excellent returns with bond funds (when the general stock market was on a downward trend for awhile).
As for income trust funds, although the cash dividends have been excellent so far, the returns on them are not guaranteed! Plus, the oil and gas industry companies that have these income trust funds, must purchase new oil and gas fields to keep the cash flowing to trust unit holders. Not so sure what the power generation companies do to keep the cash flow going as well.
There's also the price of income trust funds. They're tied into what's happening in the stock market. The Oil and Gas income trust funds have wider swings in their stock market price (tied to the price of a barrel of oil). Due to this bigger risk, the oil and gas income trust funds generally pay bigger cash dividends than a power income fund. You can't seem to get away from the RISK vs REWARD formula! (Similar to betting at the racetrack!)
One nice added feature to the income trust funds here in Canada, is that you pay a lower income tax rate than if you bought a GIC.
Do they sell income trust funds in the oil and gas industry, power generation industry, or real estate, in the U.S? If so, do you get a preferrential tax rate too?
Thanks,
Trying2win
--As a Canadian, I've been investing in the stock market for about 25 years. Over the long run, I'm a loser at buying and selling individual stocks. Since it's the old proverbial cliche "Once stung, twice shy", needless to say, I very rarely buy indivdual stocks anymore. Have gotten a little cynical in that department. I compare buying individual stocks now, to someone trying to make a long term profit at a casino!
--There have been some positives for me in the stock market though, over the years. Mostly in the income fund section. Mortgage funds, bond funds...things like that. Over the last several years I tried something new. I invested in some income trust funds in the oil and gas industry, plus some in the power generation industry. Can't complain about the cash dividends these income trust funds have paid out every month since I bought them. Better returns than GIC's. Of course there is the risk factor...
While mortgage funds and bond funds may be LOW RISK funds, I realize they are not NO RISK funds. I've experienced the odd losing year with them, or low return years (next-to-nothing). Some years there have been excellent returns with bond funds (when the general stock market was on a downward trend for awhile).
As for income trust funds, although the cash dividends have been excellent so far, the returns on them are not guaranteed! Plus, the oil and gas industry companies that have these income trust funds, must purchase new oil and gas fields to keep the cash flowing to trust unit holders. Not so sure what the power generation companies do to keep the cash flow going as well.
There's also the price of income trust funds. They're tied into what's happening in the stock market. The Oil and Gas income trust funds have wider swings in their stock market price (tied to the price of a barrel of oil). Due to this bigger risk, the oil and gas income trust funds generally pay bigger cash dividends than a power income fund. You can't seem to get away from the RISK vs REWARD formula! (Similar to betting at the racetrack!)
One nice added feature to the income trust funds here in Canada, is that you pay a lower income tax rate than if you bought a GIC.
Do they sell income trust funds in the oil and gas industry, power generation industry, or real estate, in the U.S? If so, do you get a preferrential tax rate too?
Thanks,
Trying2win