Q: I'm havin' trouble getting my mind around taking loonies to buy green backs, what with the CDN dollar being so low. I have a watch list of US stocks that I would like to buy over the next 6 plus months.
I think that there certain US companies that will be good long-term buys, aka US opportunity positions.
At the same time, I understand the value of foreign currency diversification, seeing how the US dollar portfolio is hold up from the purchase of the green backs a few years ago, using the loonie.
As an option to stocks, I might be inclined to buy US ETF hedged to CDN dollars because of the though the CDN $ will return to previous levels, even in the face of low oil prices. But at the same time, there are such few hedged ETF that focus on niches of sectors, like say IPAY.
Bottom line, guess I just have to bit the bullet, as the saying goes, and convert CDN dollars to buy US stocks over the months to the end of 2020. And it seems a key trade off is a possible substantial rise in the CDN dollar which results in FX loss versus higher capital gains from US positions over time, right?!
What a muddled mind set situation I find myself in. But I'm keen to look for clarity.
What thoughts, comments or advice do you have for me?
...........Thanks........Tom
I think that there certain US companies that will be good long-term buys, aka US opportunity positions.
At the same time, I understand the value of foreign currency diversification, seeing how the US dollar portfolio is hold up from the purchase of the green backs a few years ago, using the loonie.
As an option to stocks, I might be inclined to buy US ETF hedged to CDN dollars because of the though the CDN $ will return to previous levels, even in the face of low oil prices. But at the same time, there are such few hedged ETF that focus on niches of sectors, like say IPAY.
Bottom line, guess I just have to bit the bullet, as the saying goes, and convert CDN dollars to buy US stocks over the months to the end of 2020. And it seems a key trade off is a possible substantial rise in the CDN dollar which results in FX loss versus higher capital gains from US positions over time, right?!
What a muddled mind set situation I find myself in. But I'm keen to look for clarity.
What thoughts, comments or advice do you have for me?
...........Thanks........Tom