January 8, 2014 Comments

On Wednesday the S&P 500 was flat (although the DOW was down 0.4%) and Toronto was up 0.1%

The Canadian dollar was down about a half cent.

I have U.S. stocks and U.S. cash. To hedge a bit of the U.S. cash (against a rise in the Canadian dollar) I bought some FXC on Toronto (update this should read New York) which is a fund of Canadian dollars that trades in U.S. currency. This was in an RRSP account. On TD Waterhouse, I get an automated wash trade which means I am buying this in U.S. dollars (with my U.S. cash that was in a U.S. money market account TDB 166). This means I am not paying any exchange fee to get back to Canadian currency. My plan would be to sell this if the Canadian dollar rises and I would have more U.S. dollars than I started with. This sort of thing may not be worth bothering with, but anyhow I am doing this on a small scale.

As the Canadian dollar falls this helps exporters and hurts retailers who sell imported products. I considered if I should trim my Canadian Tire position. But most of that is in a taxable account and I don’t think it is wise to trigger a capital gain.

It certainly has been a good time to own (most) stocks these past few years, especially U.S. stocks. Basically most large companies make strong profits and owning these companies tend to to work out well for investors, although with lots of ups and downs.

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