A good lesson for investors: Canadian income-trust incident

Once again, we're aware that government indeed has a enormous power to shake the market. On Nov 1st (bloody Wed) financial ministry Flaherty suddenly announced a shocking policy that existing income trusts should pay taxed in the near future. And a lot of related securities drops more than 10% that day in Canada. What's more, my mutual fund(Paradigm fund) was hit hard, losing more that 11% in one single day. Until now, it has fell over 18% from the beginning of the incident.

The great thing is I've done my best for asset allocation, so the loss was only a small part of my portfolio. Most importantly, it might be a once-in-a-lifetime opportunity to cash in on that fund at bargain prices in order to cut some losses in the future.