The unexpected fallout from the interest rate hike last week could dampen the Canadian economy, but help individual investors.
With the U.S. Fed now apparently holding back on further interest rate hikes and the prospects of another Canadian interest rate bump in the fall, the Canadian dollar has taken off to the upside, probably much further than the Bank of Canada expected.
This could definitively put a damper on higher priced U.S.-bound Canadian exports.
Get daily National news
However, for investors looking to diversify into the hot U.S. stock market which is logging new record highs compared to a flat TSX, it’s become a lot cheaper to invest south of the border, with U.S. dollars costing around $1.26 today, rather than $1.37 two months ago.
And as a side note, U.S.-bound travellers will find vacations significantly more reasonable with the stronger Canadian dollar.
Don’t forget to join Michael Levy Saturday at 8:45 AM on Moneytalks with Mike Campbell.
Comments