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Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Dollar Store

The Canadian dollar is moving towards parity with the US$. Currency moves can be deceptive as many people never notice them if they don't purchase anything outside their home country. I have been a buyer of US traded stocks on occasion and I often end up with US dollars after a sale. I really don't want to own US$ at the moment and I am not inclined to make any long term investments in US$ denominated securites.

There are Ten Reasons Not to Move to Canada according to Sarah Anderson. Reason #10 refers to climate which is a nice factual reason. However, her list didn't mention currency risk. I believe this issue will become more prevalent in the media over the next few years. At least Canadians will be able to afford some nice winter wear.

The "big picture" is that a great year of trading US$ securities could turn into a losing year due to foriegn exchange losses. Canadian dollar holders had ~20% gains against the US$ last year. Most Canadians are doing better than they think and people are starting to notice.



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