The Canadian Dollar; a recipe for success

I love it when a plan comes together.

Nearly two years ago we wrote about the Canadian Dollar being on a long-term ascent when compared to the US Dollar and most other developed nation’s currencies. We talked about the fundamentals transpiring around the world that would push our loonie towards the $2.00 CAD per greenback. The fundamental uptrend in the Canadian dollar is likely to remain intact, notwithstanding the prospect that a technically oversold greenback may enjoy at nice countertrend rally at some point in the near-term. But that is what we refer to as a bump along the long road up.

We all know the story about the BRIC, and especially about the growth in the world’s two most populous countries: China and India, “Chindia”. As they grow, and the rest of the world does with it.

The world needs energy – oil, gas and uranium: Canada has energy to go.
The world needs food – wheat, fertilizer and nutrients to grow, Canada’s got food.
The world needs base metals – copper, nickel, moly and more - they can be found in abundance in Canada.
The world needs a safe, reliable place to do business, one that will honour it’s contracts - Canada seems to be a pretty safe bet.
The world likes to do business with others it likes; Canada seems to be a pretty friendly place, having good relations with nearly all other nations.

What a recipe for success!



Saverio Manzo