PrefBlog

It seems I have another competitor, of whom I was not previously aware: NexGen Canadian Preferred Share Tax Managed Fund, managed by Jeff Herold of JZechner Associates Inc.. He had a piece in the Globe today titled Preferred shares offer lush yields for those who do their homework.

They’ve accumulated over $37-million in assets! Sure is nice to have good distribution channels…

Boyd Erman of the Globe writes a polemic titled Hyperinflation thesis has been discredited, yet it still ticks:

Looking back over 2013, it’s hard to imagine a more off-base call than the hyperinflation thesis. In fact, the whole idea that “money printing” would cause prices to skyrocket, turning the world into one big Zimbabwe, has been wrong for a number of years since it cropped up as a result of central banks’ response to the 2008 crisis.

As that realization finally set in this year, most commodity prices fell. Worse for many Canadian investors, gold went off a cliff, falling from nearly $1,700 (U.S.) an ounce to about $1,200. Without the notion of the metal as an inflation hedge, any “need” for gold vanished, aside from bling.
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Wrong-headed forecasts about inflation are hammering lots of small investors who were sucked into the hysteria. They, of course, are not alone. John Paulson, please stand up, along with gold miners who invested in big projects at the peak.

The Canadian preferred share market was on wheels today, with PerpetualDiscounts winning 68bp, FixedResets gaining 3bp and DeemedRetractibles up 24bp. Not surprisingly, the Performance Highlights table was dominated by winning PerpetualDiscounts and DeemedRetractibles. Volume, such as it was, which wasn’t much, was also notable for its high proportion of Straights.

This entry was posted on Monday, December 30th, 2013 at 10:34 pm and is filed under Market Action. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.