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Have you noticed that the Canadian dollar continues to sink lower and lower
against the US? This means that US dollars can buy more Canadian stuff
then ever. As of today the exchange rate is around 1.499 Canadian to
every US. That means I can buy almost 50% more stock than I could in the
US markets. Despite the Canadian economy, there are many good (high tech)
companies traded on Canadian exchanges. The stocks of many companies are
trending up (or even down -- who cares?). For absolutely nothing (read:
no interest), you can trade almost 50% more stock than you could in the US.
This alone makes Canadian markets very attractive and the trend seems to
be headed even further in that direction.
Moreover, Canadian mining stocks are particularly attractive given the
top-heavy nature of the US markets and the bottoming tendencies of natural
resources such as gold. Since most promising natural resource (mining)
stocks seem to be traded on Canadian exchanges, it might be worth the
effort to investigate. This is especially true in the junior mining
markets where stocks run on average .40 to 1.50 Canadian.
Regards,
Brian.
PS. In countries like China and Russia where the markets have been severely
broken down, gold is becoming the currency of choice. More and more people
in these countries are trading in paper money for grams of gold and using
that to buy the day to day goods they need to survive. One could argue that
this continuing trend will lend support to gold. What do you think?
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