What we’re seeing now may mark a real turning point. Or it might be simply a fleeting rally before another major down leg. But there’s one strong argument that we’ve seen the worst for trusts and companies whose underlying businesses have stayed strong: They’ve been noticeably holding their own in the stock market since late October. Read More

A reliable and growing yield of 11 percent in a secure industry, and the chance to multiply your money four-fold in a volatile one: The two April High Yield of the Month entries are opposites that together cover both bases. Read More

The question going forward: Is the worst behind us in terms of economic growth, energy and metals prices? If the answer’s yes, then the worst is also behind Canadian dollar values, which should start to appreciate, not only against the US Dollar, but also versus the European currencies. Read More

Erratic action was the only consistency for global markets in March 2009. The broad-based S&P/Toronto Stock Exchange Income Trust Index (SPRTCM) sold off sharply in early March, touched bottom on the 9th, rallied 23 percent, and then tailed off in the month’s last days. Its moves mirrored similar action in crude oil, as well as the Canadian dollar. Read More

We don’t have all the information on how trusts will deal with 2011 yet. The good news is that we do know, beyond the shadow of a doubt, that good businesses will fare well no matter what happens on the trust tax front. Moreover, all of them are still pricing in a great deal of 2011 uncertainty and risk. That means little downside risk again no matter what happens, and a lot of upside as uncertainty is gradually reduced in coming months. Read More

Round up the usual suspects. That memorable line from the final scene of Casablanca just as easily applies to the Dividend Watch List. Of the 11 distribution cuts we saw last month, eight were by repeat offenders, i.e. companies that had already cut payouts at least once since September. Read More

On his way to London for a summit of G20 leaders, Canadian Prime Minister Stephen Harper made stops in Washington, DC and New York to tout his ideas to fix broken banks and maintain free trade. Read More

What we have now is essentially the Fed creating currency out of thin air with which to purchase assets. This is clearly a mission reserved for the worst of circumstances, and we’ll deal with the unintended consequences later. But easing access to credit and stimulating growth are the objectives right now. Read More

What does the rise of the BRIC countries mean for Canada over the long term? Canada’s trade relationship with the four major emerging markets has certainly evolved during the past decade, and the future promises more of the same: Brazil, Russia, India and China are projected to grow significantly in coming decades, resulting in higher incomes and more purchasing power for their respective nascent middle classes. Read More

US Federal Reserve Chairman Ben Bernanke, in remarks prepared for an address to the Council on Foreign Relations in Washington, reiterated his view that the recession could end in 2009 if the financial system stabilizes. Read More

China is now Canada’s second-largest trading partner, trailing only to the US. But, according to a recent Fraser Institute study of the economic relationship between China and Canada, “There are unexploited opportunities for further gains from trade that can enrich both countries.” Read More

Global markets are, of course, responding to what seems to be a bottomless pit of bad economic news. Canada’s fourth quarter gross domestic product (GDP) shrank at an annual rate of 3.4 percent, its worst showing since 1991. And that was a dramatic outperformance relative to the US (a 6.4 percent annualized contraction), European Union (5.9 percent) and Japan (12.7 percent). Read More

Underlying business strength is the only assurance a trust will survive this downturn while staying in place to ride the eventual recovery. And that’s one thing the March High Yields of the Month, Aggressive Holding Enerplus Resources (TSX: ERF-U, NYSE: ERF) and Conservative Holding Northern Property REIT (TSX: NPR-U, OTC: NPRUF), have in common. Read More

At the most general level, the law on both sides of the US-Canada border recognizes that income trust conversions will be tax-free events for unitholders. The intent, colored by a reasonable bias in favor of the free flow of capital across borders, is to avoid tax consequences for investors. Read More

Dividend-cut casualties tallied 18 last month: eight oil and gas producers, three oil service trusts, three producers/processors of other commodities, one diversified manufacturer, a financial services company and two closed-end funds. Roughly half were repeat offenders, having already cut their distributions at least once during this down cycle. Read More

Since this bear market began in summer 2007, my approach has been to stick with companies that have held together as businesses. The rationale is simply that if a company stands up to the stress tests amid this economic turmoil, it will recover its stock market losses in short order when macro conditions improve. And as for Canadian trusts of all varieties, we’ll continue to receive generous distributions while we wait. Read More

Are we still best off sticking with positions in well-run Canadian trusts and dividend-paying corporations? Are we close enough to a turn and are values truly compelling enough to weather further potential pain, or are we better off dumping everything as staying in cash until there’s a real sign of a turn? Read More

The details of Korea’s February trade data offer a small bit of hope that the decline in global trade is slowing, or at least stabilizing. South Korea’s trade numbers are widel watched because they’re the first foreign figures released and usually provide a good indication of foreign trade and manufacturing activity in other Asian economies. Read More

The first quarter numbers from the Big Five will likely reveal continuing profitability, but that won’t persist unless the root cause of the global meltdown is addressed. First comes the rescue of the US banking system, then we can talk about stabilization and recovery for Canada’s and the world’s economy. Read More

The current economic situation will challenge all financial institutions. Canadian banks have handled the first wave--the financial crisis--relatively well. The second wave--a serious economic downturn--will hit both capital and profits, but the Canadian banking system is probably better positioned than most others to ride it out. Read More