How do I invest money in Canada

Invest while the Canadian dollar is really low

I've just started investing now that I've got a steady job, a retirement plan, government bonds, and good savings. With the Canadian dollar close to $ 0.70, it seems like a waste to buy US stocks right now.

To my understanding, given that both silver and gold are valued in USD, this seems like a waste as the dollar grows back to face value, resulting in a loss of profit from the exchange rate.

Investing in Canadian stocks seems like the safe bet as it is not affected by the exchange rate.

Since my currency is low, is there any way I can use my investments to my advantage?

Victor123

Yes. Higher currency short selling. USD in this case.

JimmyJazzx

@ base64 What benefit would a hedged ETF have for me if the dollar were currently down? or would it just eliminate (bend) the loss if / when the dollar shows up. That sounds good. I have to do some research!

base64

@JimmyJazzx it has no advantage with CAD already failed. It only gives you peace of mind that CAD has the slightest chance of recovering and consuming your profits on US investments. XSP is the most popular.

Barrycarter

@ Victor123 is correct. You should sell USD / CAD (forex market); In other words, buy Canadian money with US money and pay the US money back later (presumably when the exchange rate is cheaper).

Eric

If you're investing for the long term, focusing on Canadian ETFs is probably your best place to start. In the long run, the relative value of the Canadian dollar against other currencies doesn't matter much, especially if you continue to make, spend, and invest in Canadian dollars.

Trying to make money on currency fluctuations carries a high level of risk and is more likely to result in losses than gains. Think of forex trading as a game of chance rather than an investment.

Jason B.

They assume the Canadian dollar is at a low point and will rebound. The current level could be the new normal for many years to come. It could keep falling. If you want to bet the loonie will recover, how long are you willing to wait? The market can wait decades, right?

JimmyJazzx

I am not an expert on the world economy, but I think it is reasonable to look at the past and see that it is a volatile market with many ups and downs. If the CAD dollar stayed low for decades, I / the country would be much more concerned than just some losses in the dollar. I also had to wait at least 40 years before I could even look at early retirement. (Again, this doesn't answer the question at all, just a bunch of scare tactics)

keshlam

If you did this, you should have done it a decade ago, when 1 Canadian dollar was worth 62 cents US. ("Tiny little Canadian dollars," as our auctioneer said.) I would take this historical exchange rate as a strong argument against the Assume that the Canadian dollar is sure to get stronger from here.

Jason B.

I am not scared. There is no guarantee that the Canadian dollar will recover or stay at current levels. There is uncertainty. If you think it will recover, you can certainly invest solely in Canada and diversify when it does recover. But be aware that it is a risk that you are taking.

user39682

The naysayers here don't know what they're talking about. If you look at the history of the Canadian dollar exchange rate, you will see that it goes from high to low and back again in cycles. The only problem is that these cycles last for years. If you are patient, I have no doubt that the Canadian dollar will hit parity again.