October 25, 2017

On Wednesday, the S&P 500 was down 0.5% and Toronto was down 0.3%.

Linamar was up 0.8% despite the down day in the markets and seems attractive although its not clear to me how it might be affected by any failure of NAFTA.

The Canadian dollar was down to about 78 U.S. cents today as the Bank of Canada held interest rates steady. I used the Norbert Gambit today to move some U.S cash back to Canadian. This was in an account that had a lot of U.S. cash and very little Canadian after I had sold out of Wells Fargo in late 2016 due to its troubles. (In retrospect I should have moved some of that cash much sooner, but today’s 78 cents is a better exchange than has prevailed in some months.) I left some cash on the U.S. side and may move that if the Canadian dollar sinks further.

For more information on Norbert search Norbert and DLR in these comments the past couple of years. TD Direct charged me $43 and it appeared to me I paid and additional $20 in bid/ask spread costs both in buying DLR.u and then Selling DLR. So total cost $83 (well a bit higher as one of those $20 was U.S. dollars). $83 was 0.35% on the Canadian amount I moved which is a good bit cheaper than the standard charge from TD. It might have been possible with a bit of patience to avoid the bid /ask spread but then the exchange rate could move while a person tries to get cute like that.