Another Gem from Bill Gross

Gotta read this one.

Preferred Shares - Update

Since I sold out my preferred share positions, the Euro blew up and people are fearing a double dip recession. Consequently, fears of inflation abated and 3 of the preferred share issues are up between 2% (cl.pr.b) and 6% (bns.pr.m, pow.pr.b). BCE.PR.A is down 4%.

Preferred Shares - Performance

As I explained in earlier posts, I had bought some preferred shares because they had gone down in price and was hoping to see a normalization of share prices before fear of inflation kicked in. It didn't really happen. Here's my investment performance on those preferred shares:

	bns	bce	cl	pow
buy price	20.25	22.00	23.39	21.70
sell price	18.71	21.67	24.85	21.00
buy date	11-Aug-09	4-Nov-08	11-May-09	10-Aug-09
sell date	8-Apr-10	23-Apr-10	8-Apr-10	8-Apr-10
net gain/loss	-54.81	155.50	131.13	-4.84
return	-5.41	4.71	11.21	-0.45
annualized	-8.23	3.21	12.33	-0.68

net gain/loss includes dividends and 20$ in trading fees for each security.

The total return weighted by shares per security was 3.46%. Annualized that comes out to 2.36%. Over that period, XBB, a Canadian bond ETF gained about 4% and the TSE gained about 16% without counting dividends or interest, compared to my 3.46% including dividends. So, all in all, not very good for me.