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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: rubbersoul who wrote (16583)	10/20/2004 1:14:56 PM
From: tyc:>	Read Replies (5) \| Respond to of 312313

>>Could you explain your reasoning? I would much prefer to listen to someone tell me why it is NOT so ! As JP pointed out the dollar is just a yardstick. If the dollar "climbs in value" the inches of that yardstick grow, and therefore everything measured by it should have a smaller nominal measurement (i.e. price). CC says "gold is the only true yardstick". What he is saying is the gold never changes in value. When it appears to go up in PRICE all that has happened is that the "inches on the yardstick" that is the dollar, have got smaller. But gold is just another asset class. Measured in Canadian dollars, its price is the same now as it was ten years ago. Therefore its value hasn't even kept pace with inflation. But what dismays me is that the Canadian large cap stock index has significantly outpaced the equivalent US index, (S&P500). Even when the US industry is enjoying lower costs BECAUSE OF the fall in the value of the US dollar. Is this a buying opportunity on the principle that one should "buy low and sell high"? Should we not so use the higher Canadian dollar to eschew Canadian stocks and buy US stocks?