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To: Cogito Ergo Sum who wrote (83153)	10/6/2009 4:58:31 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 118717

The currency exchange loss on USD denominated stocks the last few years for Canadian investor has been pretty punishing and it is not that easy to get access to other exchanges through Canadian brokers. It is getting better, but in many case Canadians as still forced to buy ADR's through New York and other exchanges. ADR's are again subject to some currency losses plus in some cases a discount to the value of the underlying. It used to be good idea to switch to USD, but with the devaluation, other currencies are just better. There is a fundamental shift happening as many have commented before. What the new currency is is anyone's guess and it will take a decade to emerge if the switch from the British pound is an good example.

To: Cogito Ergo Sum who wrote (83153)	10/7/2009 10:12:03 AM
From: Tapcon	Read Replies (1) \| Respond to of 118717

You can remove the exchange rate risk in your CDN account when you buy US securities if you have a proportion of your portfolio in US money mkt. When you make a purchase of US securities, you have to simultaneously sell US money mkt in a wash trade. If you sell US security, then wash with a US money mkt buy. Right now, as I'm sure you're aware, 1.06 CDN dollar for US buck. Not bad by historical levels. Unless you are saying you are staying away from US market because you think the US buck will continue to deteriorate. I share that view, but think there are still more opportunities on the US side to invest those US bucks in some China and Brazil or emerging mkt plays. I bought DSWL and CETV for example. I think for one day back in Nov, 2007, CDN dollar spiked to .91 or so. Would have been a great day to take a position in US money mkt to play on the US side going forward.

To: Cogito Ergo Sum who wrote (83153)	10/7/2009 11:07:12 AM
From: Keith Feral	Read Replies (2) \| Respond to of 118717

The weak dollar almost creates some level of market protectionism. I remember your comments about the exchange risk a couple months ago. Thought it would level out by now, but apparently it hasn't. I wonder where this market would be right now if the dollar was stable and the US markets could attract more foreign investment. I have to keep myself from even turning on CNBC these days, since they keep ranting about the dollar. They keep tracking any intraday spike or decline in the dollar to the equity markets. I'm not really sure if that's the case or not, but it makes sense to some degree if people are selling stocks and buying dollars in return. Other than that, it's just the carry trade running it's course as usual. Interesting to see crude take a breather on the bullish inventory reports this morning. The breakout in gold suddenly has everyone calling for $90 oil next year.