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I have just started to get into investing now that I have a steady job, pension plan, government bonds, and good savings. With the Canadian dollar being close to $0.70 USD, it seems like a waste to buy any U.S. stocks at this time.

From my understanding, given that silver and gold are both valued in USD, this would seem to be a waste if/when the dollar grows back to par, resulting in the loss of profits from the exchange rate.

Investing in Canadian stocks seem like the safe bet since they are not impacted by the exchange rate.

Is there a way to leverage my investments to my advantage due to the the fact my currency is low?

  • Yes. short sell the currency that is higher. USD in this case. – Victor123 Jul 24 '15 at 14:42
  • @base64 what advantage would a Hedged ETF have for me with the dollar currently down? or would it just eliminate(curve) the loss when/if the dollar pops up. That sounds great. Ill have to do some research! – JimmyJazzx Jul 24 '15 at 17:32
  • @JimmyJazzx it does not have any advantage with CAD already down. It only gives a peace of mind from worrying that CAD have the slightest chance to recover and eat your gains in US investments. XSP is the most popular. – base64 Jul 24 '15 at 18:08
  • @Victor123 is correct. You should sell USD/CAD (Forex market); in other words, buy Canadian money with US money, and pay back the US money later (presumably when the exchange rate is more favorable). – barrycarter Jul 28 '15 at 16:13
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If you're investing for the long haul, then focusing on Canadian ETFs is probably the best place to start. In the long run, the relative value of the Canadian dollar with respect to other currencies will not matter much, especially if you continue to earn, spend and invest in Canadian dollars.

Attempting to make money off of currency fluctuations will be high risk and likely lead to losses rather than gains. Consider forex trading more as gambling than investing.

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You are making the assumption the Canadian dollar is at a low point and will recover. The current level could be the new normal for many years. It could also fall further. If you are looking to make a bet that the loonie will recover, how long are you willing to wait? The market can wait decades, can you?

  • I'm not an expert in the world economy, But I think its reasonable to look at the past and see its a volatile market with a lot of ups and downs. If the CAD dollar sat low for decades I/the country would be concerned about a lot more then just some losses on the dollar. Plus I got at least 40 year to wait before i can even look at early retirement. (Also this doesn't answer the question at all, just a bunch of fear mongering) – JimmyJazzx Jul 24 '15 at 17:25
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    If you were going to do this, you should have done it a decade ago, when 1 Canadian Dollar was worth 62 cents US. ("Tiny little metric Canadian dollars", as our auctioneer used to say.) I'd call that historic exchange rate a strong argument against assuming that the Canadian dollar is certain to strengthen from here. – keshlam Jul 24 '15 at 19:33
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    I am not fear-mongering. There is no guarantee that the Canadian dollar will recover or stay at current levels. There is uncertainty. If you believe it will recover, you can certainly invest solely in Canada and diversify when it recovers. But be aware that it's a risk you are taking. – Jason B Jul 24 '15 at 20:36
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The naysayers here do not know what they are talking about. If you look at the history of the Canadian dollar exchange rate you will see it goes in cycles from high to low and back again. The only trouble is these cycles take years to complete. If you are patient I have no doubt whatsoever that the Canadian dollar will once again reach parity.

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