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CAD/USD fifth losing day

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  • Sep 12th, 2018 10:59 am
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[OP]
Deal Addict
Sep 19, 2009
2180 posts
937 upvotes
Toronto

CAD/USD fifth losing day

2.5% in five days. Can anything stop the fall?
40 replies
Deal Addict
Dec 4, 2016
1995 posts
1016 upvotes
I don't see the pressure to increase rates and defend the loonie. Unlike the 90s, teachers and nurses are not heading to US in droves for the higher pay.
[OP]
Deal Addict
Sep 19, 2009
2180 posts
937 upvotes
Toronto
Garth T. seems to agree with you today.
The Canadian dollar, at 82 cents US not so long ago, is plowing towards the 75-cent level. That currency devaluation stokes inflation and helps push the central bank towards another rate increase to shore the buck and mitigate the damage.
Deal Expert
Jan 27, 2006
20763 posts
14244 upvotes
Vancouver, BC
Falling oil prices, uncertainty over NAFTA, and a crazed trading partner slapping tariffs on everything regardless of treaties or not are all pressuring the loonie downwards.
Member
Aug 22, 2012
451 posts
481 upvotes
Mark Town
65 cents loonie will arrive once auto tariff is slapped.
Deal Addict
Apr 10, 2011
3467 posts
3978 upvotes
Canada
Foreign Real Estate Investors are cheering!

The dropping loonie has made their parked offshore US Dollar bank accounts better able to buy more Canadian real estate.

Now, more Canadians will leave the cities and those units replaced with more empty houses and vacant condos.

Let the dollar plumit Trudeau. Print more money. Write more cheques. It's not your money, so why worry. You've got your dad's trust fund money (probably also parked offshore in US dollars).
Member
Aug 22, 2012
451 posts
481 upvotes
Mark Town
Foreigners will not pick up a falling knife. They only buy when prices are rising.

There is a reason that the stock market did fall much despite of 20% gain last year - a lot of money are pouring into the USA.
Deal Expert
Jan 27, 2006
20763 posts
14244 upvotes
Vancouver, BC
sherwoodRFD wrote: Foreigners will not pick up a falling knife. They only buy when prices are rising.

There is a reason that the stock market did fall much despite of 20% gain last year - a lot of money are pouring into the USA.
Exactly.

The US housing market is flying right now with supply shortages driving up prices... where does everyone think the money is coming from especially if you consider that they just went through a housing crash in 08/09. Foreign investors don't aren't set for one location or country... they go where the money is made! They don't care where it's made, or how it's made as long as there is money to be made.
Deal Addict
Jan 23, 2006
3082 posts
2384 upvotes
Well, same seems to happen with the aussie...

While it sucks for consumers, there is nothing we can do about it. Lets hope it will pull back at least to 1.25, but wih the orange bafoon south of the border, future seems foggy...
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Sr. Member
User avatar
Jul 30, 2005
910 posts
688 upvotes
Downtown Toronto
andrew4321 wrote: Garth T. seems to agree with you today.
Garth Turner has been wrong about a lot of things for a very long time.

I like the guy, have read his blog since 2007 and met him a couple of times, but he's been wrong, wrong wrong.

The best thing for your finances is to stop listening to Garth.
Newbie
Sep 18, 2017
91 posts
108 upvotes
Kestral wrote: Garth Turner has been wrong about a lot of things for a very long time.

I like the guy, have read his blog since 2007 and met him a couple of times, but he's been wrong, wrong wrong.

The best thing for your finances is to stop listening to Garth.
He was wrong about preaching that real estate was about to crash in Canada for over 10 years before a correction finally started to happen. A lot of people listened to him early on and avoided buying into a rising market that gave some amazing returns for the last decade. He is right, imo, about recommending a cheap, balanced ETF portfolio and shying away from commission driven financial planners selling mutual funds. And about maxing out your TFSA and a lot of other things. I don't read it daily anymore, too repetitive.
Deal Addict
Jan 20, 2016
2028 posts
1012 upvotes
Houston, TX
FUMONEY wrote: He was wrong about preaching that real estate was about to crash in Canada for over 10 years before a correction finally started to happen. A lot of people listened to him early on and avoided buying into a rising market that gave some amazing returns for the last decade. He is right, imo, about recommending a cheap, balanced ETF portfolio and shying away from commission driven financial planners selling mutual funds. And about maxing out your TFSA and a lot of other things. I don't read it daily anymore, too repetitive.
He's right on those Captain Obvious things which quite everyone is talking about (invest tax free & low cost , live by your means etc) while being wrong for long 10+ years and finally (aka broken clock) he got his glory "I told ya!" moment...for sometime.

For me his "voters accountability" (rather not) journey from PC to Greens (lol) and then to Libs just attempting to grab a seat, is quite enough to have zero credibility...He's not better investor than politician, however he quite good in marketing himself and selling CCP portfolio for 1% fee, lol.
Make the face great again
Deal Addict
Feb 4, 2017
1306 posts
1485 upvotes
Toronto
If you have invested in ETFs such as VGRO or XAW, you would have benefited from a weakening CAD.
Deal Addict
Jan 20, 2016
2028 posts
1012 upvotes
Houston, TX
craftsman wrote: Falling oil prices, uncertainty over NAFTA, and a crazed trading partner slapping tariffs on everything regardless of treaties or not are all pressuring the loonie downwards.
Oil price is UP +25% for last year, bu not the loonie.

NAFTA talks failure more are related to drama teacher "ability" to rule a country and do a real job, not just media postures. When one side (US) brings to the table economic issues and another climate, gender and other BS, hardly negotiations will succeed. To make things "easier" JT take unions to the table...On G7 Trump agreed to remove sunset clause from agenda, one of the most principal differences, things seems to be going normal and then drama teacher decided to play on public...
Now we all can see the result of it, USD/CAD in particular
Make the face great again
Deal Addict
User avatar
Jan 14, 2009
4748 posts
3847 upvotes
Vancouver, BC
FUMONEY wrote: He was wrong about preaching that real estate was about to crash in Canada for over 10 years before a correction finally started to happen. A lot of people listened to him early on and avoided buying into a rising market that gave some amazing returns for the last decade. He is right, imo, about recommending a cheap, balanced ETF portfolio and shying away from commission driven financial planners selling mutual funds. And about maxing out your TFSA and a lot of other things. I don't read it daily anymore, too repetitive.
That's not his whole message. His message was invest in ETFs AND time the real estate market crash. He recently threw in the towel on his real estate prediction. His followers at best invested in ETFs while being priced out, at worst they invested in nothing fearing a widespread crash. Go check out the real estate forum for some angry priced out renters. Be skeptical when people act like they have a crystal ball.
If you buy vgro for a thousand years Vancouver homes will still be out of reach.
Deal Addict
Dec 11, 2007
1890 posts
482 upvotes
Markham
saw the news about that G7 thing between Ian Hanomansing and the CBC bureau chief but seems like he said / she said so far. Was there any new proof?

Personally I'm not all that concerned with the CAD decline. Not great for day to day living, but if you are invested intelligently then your portfolio gains and income gains should offset that

Re: Garth, if i were a RE bull i'd actually be quite concerned that one of the biggest bears has thrown in the towel :P Logically speaking I don't think he was that far out in left field, but asset pricing has an interesting way of staying irrational for a long time. Why its a good idea to always hedge your bets!

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