RE:Positive Postsdeisman03 wrote: Some folks here think this investment vehicle can't fail.
It can.
No, I'm not saying it is about to do so now or even in the near future.
However, there is the overhanging shadow of "unrealized competition" lurking over the heads of the banks and other financial institutions in Canada.
That may or may not be an issue in the future, but some very astute investors see it as a problem, should the government decide to enable legislation, which forces the Canada Pension Plan or other private pension plans in Canada to invest a specified portion of their investment capital in Canada, they will be in direct competition with Canadian financial institutions.
If this happens, I would expect to see a distribution cut or a severe decline in unit price.
IMHO, this vehicle will be stable where it is now, until prime interest rates are even slightly reduced, and when it's established where and how the CPP can invest in Canada.
They are Gorrilas in the room of investors and can cause some severe swings by virtue signalling, changing a lot of investment methodology and activity.
This isn't a warning, just something to keep an eye on, so you can be nimble and jump out if needed, without losing base capital.
Right now, IMHO, the price of this unit can easily slip back to the nines without a lot of warning.
Counting profit before you actually have secured that profit????????????
That's why I'm never long in this or any other investment vehicle.
When the swings are happening is the best time to make substantial profits, by selling high and buying low. Again, just IMHO.
If this trust is going to swing 30-45 or more cents every month, just before and sometime after the registered date, I'm going to sell high and buy low every time it looks best.
Sometimes it's flat, mostly it isn't. That's why some folks who bought in at $15 a few years ago are still hanging on, hoping to recoup their base capital, let alone make a profit.
It can happen to any of us, no matter how astute.
Don't fall in love with any investment vehicle.
GLTA the good folks here.
Chicken little investing is not for me. Any investment can fail everyone knows that. My thesis going forward is intrest rates are going to be reduced. How much and when anyone can debate that. If I am right BK is a great vehicle going forward. I think my investment could do 50% this year. Good luck with your swing trading. Hope you make 300%.