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Discussion Starter · #5 · (Edited)
Yes currency tends to move up and down. Just like at the beginning of 2008 when the CND and USD were parity and then the CND tanked to the end of 2008 so Canadians actually "lost" more than half of their investment. Over decades it is a non-factor.
 

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Just like at the beginning of 2008 when the CND and USD were parity and then the CND tanked to the end of 2008 so Canadians actually "lost" more than half of their investment.
You mean Canadian investors in US securities gained from the currency movement in 2008, right? As CAD drops, US securities gain from the drop all things being equal...
 

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Like every investment, currencies have fundamentals and the USD is overvalued, imo.

That does not mean US securities have to fall if the USD falls, though. A US company operating in the US with USD revenues should, but a company with multinational revenues shouldn't.
 

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Discussion Starter · #8 ·
You mean Canadian investors in US securities gained from the currency movement in 2008, right? As CAD drops, US securities gain from the drop all things being equal...
Yup. I don't really pay attention when the CND value of my USD holdings rise due to currency or vice versa. It will all be a wash when I'm looking to liquidate in 30-40 years.
 

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Since I was looking at a long time horizon (10-15yrs), I didn't pay attention to currency fluctuation either. But it did make a huge difference when I had to cash out and completed ACB for the income tax purposes. :(
Just something to keep in mind.
 

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A US company operating in the US with USD revenues should, but a company with multinational revenues shouldn't.
I agree with that. I also believe for multinational US stocks, the market is efficient enough to wash out currency fluctuation even on a daily basis, although that's a little hard to confirm when so many variables are involved.
 
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