RE:Added again todayThanks for sharing Obscure. I wasn't so brave. My last buy was Friday at $11.21. When I saw the Market today I took my kayak to the Pinery Provincial Park and paddled 12km as the weather here is amazing.
I still have a few hundred Enbridge shares bought in 2020 at an average of $40. I never thought we would be back near those prices again. Oil is not minus $35 a bbl, it doesn't look like we will all die from covid, there is no miracle energy form that is going to replace oil and gas in the immediate future, I doubt winter will be cancelled this year so I just don't understand this relentless sell off in everything Utility like.
Utilities are getting hammered but look at Enbridge commons. If the dividend is rounded to 8% you would need to get 10.4% on a bond or GIC using the 1.3 factor that favours dividends. I have noticed very little selling of corporate bonds. The yields have moved up slightly with minor selling but in no way corresponds to the selling in Utility shares.
I follow the preferred share market where I made a very good profit when I bought in 2020 and sold late 2021 and early 2022. What I'm seeing in perpetual preferreds is that they have come down in price but again not even close to the percentageloss for utilties. Most investment grade perpetuals 3H to 2L are trading between 6 and 6.9%. Many were actually up today. My question is why it is just utility shares that keep getting taken to the wood shed for another whipping? Other asset classes don't seem to be following utilities down as harshly.
One other thing that concerns me (and why I'm sitting with 50% cash) is the volumes for the large drops are not that high and no where near what I would consider capitulation. If I were to see these large moves down on massive volume that would be my trigger to start get greedy.
One other thing I'd like to mention is that in my 35 years working in the Chemical Valley (retired 7 years) and had numerous interactions with Enbridge they were nothing short of outstanding with safety and integrity second to none.
I think for now I'll do what another poster I have great respect for. Put some popcorn on and watch the show for a while longer before placing anymore bets.