Is anybody planning on making money from the at-par loonie?

[Dutch]

I was thinking about how to take advantage of our at-par (or better) dollar.

 

With some excess cash, I was thinking about buying some blue-chip, dividend paying US dollar stock.

 

History has shown that the US dollar is above ours and I expect that to remain over the long term. What buying this stock would allow is a better investment than simply buying USD currency and holding on to it (see my boat account thought below). You get the advantage of earning income in dividends in the mean time and in the long-run appreciation of the stock and of the dollar back to "normal" levels. When you dispose of the stock - tax is paid at only capital gains rates.

 

What are your thoughts on this and what, if anything else, are people doing to take advantage of the strong dollar?

 

Oh - another thing, I was thinking of locking in by opening a USD bank account (and depositing some funds) for a possible US boat purchase next year.

[Deano]

You would have better luck with the euro. It's not so much that the Canadian dollar is up, it's the american dollar that is down. Just as Al Quida help the collapse of russia, they are doing the same to the USA. Through high oil prices, money is all going to Arab countries. And with China and Russia help, we may be seeing another collapse.

[aniceguy]

hedge the dollar against an interst drop by bank of canada next month. If your doing that though you need big big coin to make any real money on the spread

[Crazyhook]

you think prime will be going down next month? that would be a good thing...

 

I plan on buying some stocks in US companies... you get the price thats posted and if the US dollar gains on the Canadian dollar you would benefit from the company and the difference in the currency

[aniceguy]

crazy it has no choice manufacturing in Canada cant work at the dollar at par

[Dutch]

I don't think we are in for a drop in rates. The BOC will hold the line.

 

If they were concerned about the climbing loonie and the impact on manufacturing, there would have been a cut on September 5 when they last met, or at least some hints at future rate cuts. The bigger issue for the BOC (whether I agree it's an issue or not) is inflation.

 

Bring on MSRP parity - that's what I want, especially on electronics, boats and vehicles.

[glirw]

I've said it once and I'll say it again . When times are uncertain , look into pumpkin futures.

[aniceguy]

Bring on MSRP parity - that's what I want, especially on electronics, boats and vehicles.

would that not be a perfect world......I wouldnt be so shocked if the BOC does a drop of at least a 1/4.

 

I think BOC wanted to wait to see how the fiasco turned out in the US and to see what impact it would have had.

 

Just my opinion though

[camillj]

confucious say when fisherman talking about investing in real estate - time to sell house

[ScarSnake]

Just as Al Quida help the collapse of russia, they are doing the same to the USA. Through high oil prices, money is all going to Arab countries.

The U.S. doesn't import as much oil from the Middle East as you might think. Canada exports more oil to the U.S. than any other country in the world, followed by Mexico. Venezuela and Nigeria also export more oil to the U.S. than any Arab country other than the Saudi's.

 

As far as making money on the exchange rate, buy a used boat in the states, sell it in Canada.

[POLLIWOGG]

Hold on to your beer bottles till you cause a shortage and they have to put the deposit up. Safer and better return on your dollar.