Delojozafado

Why Bad U.S. Statistics Are Good for the Dollar

"the dollar gained"..."0.7% against the Canadian Dollar"
It would seem on the relative percentage basis the Loonie is in the same league as the yen. This is certainly not just killing the Loonie. As a matter of fact the Loonie was not that long ago flirting with $1.10 or 10% ABOVE par. It seems that Canada is a lot like the 20 or so states in the US that actually operated on balanced budgets during the good/better economic times. The difference between Canada and Japan however is in what you can purchase for yield in Canada. TRP, KYE or ENY in the oil patch. GLHIF in the utility business(95% renewable GigaWs). Natural resources are currently as oversold as they were just previously over priced. There are now dozens of opportunities to invest in Canadian shares for yield. The Cad$ has only a fraction of the "quantitative" currency expansion issues of the US dollar. Canada has run budget surpluses over the last few years. Unlike the basket cases of NJ,NY and Caaahhleeefornia Canada recently has actually raised enough taxes to pay their bills. Whether it is the Emerging market's or the US's infrastructure stimulus plans that drives the next basic materials rally the economies of Australian, Brasil, So Africa and Canada are going to benefit. By extension their Currncies WILL outperform! A position in GLHIF with an effective 6.8 yld looks pretty nice. As the US policy of quantitative easing drives the TBT higher you could be getting the same effect working for you in an investment that increases in value by 30% on the potential currency move alone. Then there's the really risky obscure ATBUF converting to a REIT. Bruce Flatt not Almighty!