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Politics : Did Slick Boink Monica? -- Ignore unavailable to you. Want to Upgrade?

To: Zoltan! who wrote (1967)	1/27/1998 2:33:00 AM
From: foobert	Respond to of 20981

Sad but true. >>The Dow Jones Industrial Average has more than tripled since 1989, whereas the Toronto Stock Exchange average increased just 70%. After adjusting for the 20% depreciation of the Canadian dollar since 1989, the return on the TSE in U.S. dollars between 1989-1997 falls to less than 50%. Much of the small gain in the TSE is based on a recent pick-up in commodity prices, reflecting Canada's resource-based economy.>> However on this side of the fence, being invested in US stocks carries a double whammy when the C$ is falling in a rising stock market. A low C$ is also very helpful for jacking up returns on anything we export. However, it means most of us have to forget about that holiday in the sun. (Felderhof and Walsh excluded) The value of the C$ while primarily set by market forces is to some extent also controlled by the Bank of Canada setting the prime rate. (we hit an alltime low on the C$ last week - .69 cents to your buck, so there is talk of short term rate increases coming) Raising the prime rate also atracts inflow of foreign capital when the government decides that is a good thing. (not very often!) The greatest threat to our future may come if the Province of Quebec decides to split and form a country. Then we may be a second world economy.