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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?

Bob Baerker
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JimmyJazzx
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3 Answers3

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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.

Eric
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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?

Jason B
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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.

user39682
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