Q: Is journaling shares from a TSX listed company to its US counterpart, a way to potentially benefit from a weakening canadian dollar and a strengthening Us dollar?
For Example, I journal my brookfield shares to the US market today, the current exchange is 1.38.
5 years from now I sell my shares in US dollars and convert back to canadian dollar at 1.45.
Does this make sense?
For Example, I journal my brookfield shares to the US market today, the current exchange is 1.38.
5 years from now I sell my shares in US dollars and convert back to canadian dollar at 1.45.
Does this make sense?
5i Research Answer:
Because the shares are listed in the US as well, both markets prices will be essentially the same at all times, after f/x conversion. If not arbitrageurs will buy and sell to profit, quickly closing any gap. Thus, there is no real advantage. But dividends are paid in US dollars, so there is still some benefit.