This macroeconomic view provides our top-down perspective for the Canadian dollar.
- We expect the Canadian Dollar to remain in a tight range around current levels relative to its U.S. counterpart.
- We expect the U.S. economy to continue to be the best global performer.
Research & Analysis
We have added a tactic to our Canadian dollar strategy as the U.S. economy continues to have the most upside, in our opinion.
To avoid direct currency exposure while still taking advantage of the U.S. economy we are adding companies listed in Canada (on the Toronto Stock Exchange) that have a majority of income sourced in the US (another plus is if the company has a good hedging strategy).
Long-term Investment Strategy
- Depending on a client’s goals, we will add unhedged U.S. positions to their personalized portfolio
- Buying Canadian listed companies with majority of revenue sourced in the U.S (NEW)
Triggers for Strategy Change
- Interest rate increases by the Bank of Canada
- Increase oil price
- Improving and robust Canadian economy
Type: Investment Strategy Thesis
Geography: U.S., Canada
Sector: Broad Market
Area(s) of Analysis: Canadian Dollar, U.S. Dollar, U.S. economy