12-02-2015, 12:22 PM
Hey Russellhantz,
Ive been thinking a lot about this too lately, but I continue to buy US equities even though we are at 1.34. Where will the exchange rate go? I dont know. The current consensus is that the US$ will continue to grow stronger.
One aspect that I find comforting is: even though I am paying more for the initial purchase, the dividends received are also in US$, which means that the dividend rewards are also juicier
Personally, I think there are two ways to take advantage of this currency trend (until the US$ tops off):
Ive been thinking a lot about this too lately, but I continue to buy US equities even though we are at 1.34. Where will the exchange rate go? I dont know. The current consensus is that the US$ will continue to grow stronger.
One aspect that I find comforting is: even though I am paying more for the initial purchase, the dividends received are also in US$, which means that the dividend rewards are also juicier
Personally, I think there are two ways to take advantage of this currency trend (until the US$ tops off):
- Look for companies with a lot of earnings in the US and reports in CAD$ (the strong US$ will help the balance sheets and overall financials). Off the top of my head - I can think of RY.TO, TD.TO, CNR.TO, (ENB/TRP perhaps?).
- Companies trading on TSX but report financials in US$ - and more importantly, the dividends are declared and issued in US$. Companies include: AGU.TO, AQN.TO, MG.TO, BIP.UN.TO etc. I own these companies - so my returns are just that much more juicier. Note that depending on the company - if it has a lot of operations outside US, then the strong US$ also means that there are medium term headwinds because of the fact that the financials are reported in US$.