iDomN8U

You'll see a lot of sales going on in the next little bit. The 63mm Sparrow on sale now.

Normally it's good news for canadians when the US dollar is strong. Atleast for the Manufactures and exporters. Strong US dollar = Cheaper Gas, because we export most of it to them. And US will purchase more from CDN because it's cheaper to do so.

s2kobsession

we export oil to the USA only to buy it back from them for more money in the form of Gasoline. However, I agree that current dollar is great for Canadian exports, the only problem is most canadian companies have hedged against the CDN $ rising because it was going crazy for a while. Now, that hedge that was saving their ass over the past year is biting them.

btw, I saw that the sparrow was on sale as well, but considering our dollar situation, it's just as much as it was before the sale.

so who's bold enough to ask evasive or another big aftermarket parts company for their income statements? LOL

S2K Type R

Since Canada is a resources/commodities-based economy, our dollar correlates strongly with resource prices such as oil. This is because when our resources are in demand, foreign entities must buy CND currency to make their purchases which drives up the dollar. At least this is what I remember in economics.

Combined with less demand for US goods and services, the CND $ was competiting favourably against it for a while.

PearlwhiteS2k

Why is it a gamble? Things in the US is so much cheaper than in Canada such as Cars, clothing, food etc. Worst case comes I'll do my shopping in the US.Most Canadian travel to the US during the winter months and they use USD.

The Canadian dollar is low because oil and gold prices has been beaten up like a bitach. Everyone is buying back into the USD that's why it's jumping like crazy.

iDomN8U

In that instance, the loonie should strengthen.

iDomN8U

Gamble because if I did, I would buy 50,000 US @ .1% premium, then I decide I want to trade it for CDN @ .1% premium, I would loose .2 cent on the dollar just in conversion. That means I would begin making a profit if the spread was greater then .2 cents.

With the US in a recession, you might have though the CDN dollar to only strengthen not weaken. I'm not sure a lot people saw this coming.

PearlwhiteS2k

^ We are in a "R" If your thinking about making money on the US currency than yes it's a gamble but if you do a lot of traveling and US shopping it's not a gamble. I think most people know that the CND wouldn't hold high or near par vs the USD.

cthree

I <3 a weak dollar. All of my income is in US dollars. I was getting crushed for the last year! It's like a huge weight has been lifted.

cthree

You don't buy currency in cash, you do it in debt. Cash is a depreciating asset. A US t-bill on the other hand pays a yield and is guaranteed, just like cash.

MOTU

That's unfortunate. Given the U.S. market is going to take longer to recover than ours, and our dollar is going to move up compared to the green back in the next 6 - 12 months. I would look at every pop in the market as an opportunity to sell your U.S. positions. Unless your holding very blue chip companies with a 3 - 5 year time horizon.