12-02-2015, 11:24 AM
I posted something similar a while back and the conclusion was the exchange rate shouldn't impact the purchase of a stock.
But what happens if it is near historic level difference? Right now I would like to invest $5000 CAD in Hershey. The CAD to USD is 1.34. If the historic average exchange rate is, lets say 1.25; if I ever sell Hershey I immediately lose 9% of my initial investment.
I'm just trying to wrap my head around this. Is my thinking totally off? I'm pretty eager to start some positions in some US stocks but having trouble rationalizing it with the current exchange rate.
But what happens if it is near historic level difference? Right now I would like to invest $5000 CAD in Hershey. The CAD to USD is 1.34. If the historic average exchange rate is, lets say 1.25; if I ever sell Hershey I immediately lose 9% of my initial investment.
I'm just trying to wrap my head around this. Is my thinking totally off? I'm pretty eager to start some positions in some US stocks but having trouble rationalizing it with the current exchange rate.