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Tuesday, December 4, 2007

Income Generating Securities Do Well In An Interest Rate Cutting Environment

Tha Bank of Canada reduced interest rates by 25 basis points today and the US Federal Reserve is expected to do the same next week.

The US Federal Reserve and the Bank of Canada are expected to continue to lower interest rates in an effort to prevent a recession.

When that happens, investors generally turn to dividend-paying stocks to boost their return.

If history is any guide than stocks in the utilities sector, dividend paying stocks and income trusts will trend higher over the coming months.

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