Comments on: Reader Question: How to Hedge US Dollar Exposure? http://www.canadiancapitalist.com/reader-question-how-to-hedge-us-dollar-exposure/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Painter http://www.canadiancapitalist.com/reader-question-how-to-hedge-us-dollar-exposure/#comment-42632 Painter Wed, 06 Jun 2007 12:52:51 +0000 http://www.canadiancapitalist.com/2007/06/03/reader-question-how-to-hedge-us-dollar-exposure#comment-42632 This hits home for me,even my alleged advisers did not have an answer ,I bit the Bullet and converted most of US to Canadian and took a hit. I still have a substantial amount in $US bonds going out a couple of years so I held on to them and hope I am doing the right thing as it seems even the EXPERTS dont have an answer, PT This hits home for me,even my alleged advisers did not have an answer ,I bit the Bullet and converted most of US to Canadian and took a hit.

I still have a substantial amount in $US bonds going out a couple of years so I held on to them and hope I am doing the right thing as it seems even the EXPERTS dont have an answer,

PT

]]> By: The Financial Blogger http://www.canadiancapitalist.com/reader-question-how-to-hedge-us-dollar-exposure/#comment-42200 The Financial Blogger Mon, 04 Jun 2007 23:46:36 +0000 http://www.canadiancapitalist.com/2007/06/03/reader-question-how-to-hedge-us-dollar-exposure#comment-42200 I don't see the CAN $ that high for long. Many economist see the CAN $ to fall by the end of the year. My guess is that right now you should leave your money in US $. Or buy more US companies are they are undervalued. It will probably all gonna change starting next January... new election are coming... Cheers, FB. I don’t see the CAN $ that high for long. Many economist see the CAN $ to fall by the end of the year. My guess is that right now you should leave your money in US $. Or buy more US companies are they are undervalued. It will probably all gonna change starting next January… new election are coming…
Cheers,
FB.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/reader-question-how-to-hedge-us-dollar-exposure/#comment-42196 Canadian Capitalist Mon, 04 Jun 2007 23:01:13 +0000 http://www.canadiancapitalist.com/2007/06/03/reader-question-how-to-hedge-us-dollar-exposure#comment-42196 Thanks for the tip about FXC. It's an interesting product though I am wondering if there is a situation where it would be useful. Thanks for the tip about FXC. It’s an interesting product though I am wondering if there is a situation where it would be useful.

]]> By: Phil S http://www.canadiancapitalist.com/reader-question-how-to-hedge-us-dollar-exposure/#comment-42138 Phil S Mon, 04 Jun 2007 17:59:26 +0000 http://www.canadiancapitalist.com/2007/06/03/reader-question-how-to-hedge-us-dollar-exposure#comment-42138 Hey outroupistache, that's interesting I didn't know about that one myself. I personally have a huge US portfolio, but I didn't sell off any of it so I'm still fully invested stateside. In my view, there are still so many undervalued companies on the NYSE and NASDAQ (undervalued to me is single digit P/E ratios) which stand to benefit even more (by being exporters or multinational firms that report in USD) by a falling US dollar. So, when the USD falls, then I'm always interested in seeing how inflated the next quarterly report looks! Hey outroupistache, that’s interesting I didn’t know about that one myself. I personally have a huge US portfolio, but I didn’t sell off any of it so I’m still fully invested stateside.

In my view, there are still so many undervalued companies on the NYSE and NASDAQ (undervalued to me is single digit P/E ratios) which stand to benefit even more (by being exporters or multinational firms that report in USD) by a falling US dollar. So, when the USD falls, then I’m always interested in seeing how inflated the next quarterly report looks!

]]> By: outroupistache http://www.canadiancapitalist.com/reader-question-how-to-hedge-us-dollar-exposure/#comment-42037 outroupistache Mon, 04 Jun 2007 10:41:41 +0000 http://www.canadiancapitalist.com/2007/06/03/reader-question-how-to-hedge-us-dollar-exposure#comment-42037 An alternative is to use your cash to buy FXC, the ETF traded in the US in US$. It invests in C$ and so rises as the Canadian dollar rises. You get 3.75% interest currently from the fund, distributed quarterly, but pay annual expenses of 0.40%, deducted contnuously by the fund managers, Rydex Investments. The primary benefit is that the fund matches as the Canadian dollar, thus maintaining the value of your US holding relative to Canada. Check out a stock chart for that symbol on Yahoo to see how that has been doing in the last while. An alternative is to use your cash to buy FXC, the ETF traded in the US in US$. It invests in C$ and so rises as the Canadian dollar rises. You get 3.75% interest currently from the fund, distributed quarterly, but pay annual expenses of 0.40%, deducted contnuously by the fund managers, Rydex Investments. The primary benefit is that the fund matches as the Canadian dollar, thus maintaining the value of your US holding relative to Canada. Check out a stock chart for that symbol on Yahoo to see how that has been doing in the last while.

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