The loonie’s gone on some pretty wild rides before. And while it’s usually just temporary fluctuations, this time round it seems like it’s based on fundamentals.
The perception now, with the loonie’s encore surge to within a hair’s breadth of parity, is that a stronger Canadian currency is the “new normal.” The Toronto Star
At least for a while. So why is Canada’s economy the envy of the world right now?
So it turns out that oil and water do mix after all. At least here! We’ve got them in spades, plus a booming real estate market, a stable banking system, and our Central Bank is worried about inflationary pressure…thinking about RAISING interest rates. Other countries would KILL for that problem. And then, just like a lovely cherry on top, we hosted the Winter Olympics…you know, just to rub it in a bit.
So how can YOU take advantage of that?
Buy that real estate property you’ve been eyeing in Florida.
- Buy something that has a large amount of import content (like a Porsche…they’ve already started lowering prices to adjust for the stronger Canadian dollar).
- Buy into some blue chip American stocks. You know, something like Proctor and Gamble.
- Take that trip you’ve been putting off to Europe (Buzzbuzzhome’s own Matthew Slutsky took advantage of that this weekend).
- Though this is probably not something many of us have the wealth to do, acquire international companies! Look at Brookfield, they’ve been going CRAZY with acquisition lately.
- Businesses should look at upgrading their capital that is imported internationally. It’ll be relatively cheaper now!
And do it now! Other economies are bound to rebound. It’s just that we’ve got it prettttttty good right now. Nice.