Comments on: Differing Opinions on US Currency Investments for Canadians http://www.investingintelligently.com/2007/11/07/differing-opinions-on-us-currency-investments-for-canadians/ Not just another (Canadian) financial blog Wed, 03 Dec 2008 07:32:46 +0000 http://wordpress.org/?v=abc By: Nabloid.com http://www.investingintelligently.com/2007/11/07/differing-opinions-on-us-currency-investments-for-canadians/#comment-7265 Nabloid.com Fri, 09 Nov 2007 06:50:09 +0000 http://www.investingintelligently.com/2007/11/07/differing-opinions-on-us-currency-investments-for-canadians/#comment-7265 Much of the Canadian market is linked with the U.S., but our commodities trade on a world market and can be sold elsewhere, though the price is still affected by US demand. I'd say its NOT a good time to get into US assets (though that is a large blanket statement and there ARE deals out there right now.) I just think the US economy and dollar have some more downward room and will be headed lower. This isn't a bottom, I know that much. Much of the Canadian market is linked with the U.S., but our commodities trade on a world market and can be sold elsewhere, though the price is still affected by US demand.

I’d say its NOT a good time to get into US assets (though that is a large blanket statement and there ARE deals out there right now.) I just think the US economy and dollar have some more downward room and will be headed lower. This isn’t a bottom, I know that much.

]]> By: Dave http://www.investingintelligently.com/2007/11/07/differing-opinions-on-us-currency-investments-for-canadians/#comment-7261 Dave Fri, 09 Nov 2007 02:39:07 +0000 http://www.investingintelligently.com/2007/11/07/differing-opinions-on-us-currency-investments-for-canadians/#comment-7261 Good point, there is exposure to it regardless, through Canadian companies. I've subscribed to your blog and look forward to trying it out. I may be overexposed to foreign currencies at this point...although I expect to shift towards more fixed income as I get older (which will be Canadian bonds and such) and there will be a slow shift towards more Canadian dollars the older I get. Good point, there is exposure to it regardless, through Canadian companies. I’ve subscribed to your blog and look forward to trying it out.

I may be overexposed to foreign currencies at this point…although I expect to shift towards more fixed income as I get older (which will be Canadian bonds and such) and there will be a slow shift towards more Canadian dollars the older I get.

]]> By: Financial Jungle http://www.investingintelligently.com/2007/11/07/differing-opinions-on-us-currency-investments-for-canadians/#comment-7260 Financial Jungle Fri, 09 Nov 2007 02:09:02 +0000 http://www.investingintelligently.com/2007/11/07/differing-opinions-on-us-currency-investments-for-canadians/#comment-7260 Just a semi-wild guess. When you invest in the TSX, you're about 20% exposed to the US currency. Manulife, Great West, Royal Bank, TD Bank, Bank of Montreal, Teck Cominco, Borelex, and Canadian National Railway are only a few of the names that I recognize to have signification operations in the States. Think I read somewhere that Canada exports ~70% to States? Don't remember the exact figure, but it's up there. It depends on your existing allocation too. If 40% of your portfolio is in unhedged VTI, you may be over-exposed to this foreign currency. I agree with your assessment. A balanced approach is prudent. Say half VTI and half XSP. Just a semi-wild guess. When you invest in the TSX, you’re about 20% exposed to the US currency. Manulife, Great West, Royal Bank, TD Bank, Bank of Montreal, Teck Cominco, Borelex, and Canadian National Railway are only a few of the names that I recognize to have signification operations in the States. Think I read somewhere that Canada exports ~70% to States? Don’t remember the exact figure, but it’s up there.

It depends on your existing allocation too. If 40% of your portfolio is in unhedged VTI, you may be over-exposed to this foreign currency.

I agree with your assessment. A balanced approach is prudent. Say half VTI and half XSP.

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