North American Financial 15 Split Corp T.FFN

Volatility in markets

[mouserman]

SO early on didnt look to good for FFN, but later in the day here, the USD has suddenly bounced up versus other currencies, and of particular importance to FFN , versus the CAD.
Canadian financials doing ok and some of the US banks showing some green here, so perhaps FFN closes the day at or just above where the UNIT NAV was on OCt 29...

[mouserman]

[mouserman]

Not sure what just happened, no content for the post came thru. BUT last nights close the UNIT NAV was 4 cents above the OCT 29 numbers  up to $17.18 However today a huge drop in the CAD vs the USD is giving a fairly nice boost to the US banks and holdings in FFN, on top of the green looking list there. Not sure what is the cause of the rising USD....inflation good for it?

[BlueGuitar1]

Thanks again Mouserman.  So how would you rate FFN now?  Buy, Sell, Hold. Thumbsup!

[mouserman]

FFN still a decent buy.. or for some HOLD.. I did take some of the table ,as I had too big of a weighting in FFN. I did however take some profits from my MMP.un investment and rebought FFN today at 7.51 , as the resurgence of the banks in the US combined with the huge drop in CAD, shows the premium shrinking big, especially for a fairly safe fund with a ultra -high yield for commons at over 18%

[BlueGuitar1]

Thanks Mouserman.  I think I will join you. 

[BlueJay2020]

Rapid inflation leads to higher interest rates - it's now a race to see who raises quickest and highest - traders are betting on the US leading the charge and buying greenbacks in spades. It's a wise move - the US usually drives everything one way or the other.

[mouserman]

Not sure on that one, FED is caught between a rock and a hard place. Higher interest rates also means that the HUGE debt ran up by the US, in the trillions with a few  more  trillion $planned  for an infrastructure bill...will become almost impossible to service. At 0% interest rates its sustainable, but maybe not if  paying 2% on it... The other side of that coin, is the

[mdoldon]

Your hesitancy makes sense. I think what we all need to remember is that we are in totally new territory.  I'm not sure that any existing economic theory is necessarily reliable right now.  The financial media likes to make broad statements like " Markets reacted today to (pick your news item) ", but the truth is that they don't have any better handle on the reasons

[EdPaquette]

The rock and the hard place both point to a crash. I don't trust the Fed to keep this between the guardrails.