So the Canadian dollar is down sharply in the past two days and is currently sitting below 93 cents U.S. , which is interesting (given it is down almost 2 whole cents this week). What is causing this? Could be the American credit crunch, could be our trade surplus dropping (due to the very strong dollar), maybe due to the leveling off of oil prices? Could be lots of things, but it is something to watch and to maybe think about:
- If you were looking at an American equity maybe now is the time to purchase it with a strong Canadian dollar?
- If you were going on a shopping spree cross border, maybe NOW is the time?
- If you were thinking of selling an American equity, maybe wait to see where the dollar goes (unless you plan on keeping the proceeds in American funds, the way the Canadian Capitalist recommends).
The equity markets are in a state of FLUX as well, and hopefully you have a PLAN on how to deal with this (don’t get emotional, and just DUMP and run, think first what your plan is). Maybe now is a BUYING opportunity (especially for financial stocks)? Not a recommendation, just a comment.
Petroleum usage in Canada continues to rise up almost 2.0% from last year at this time. The only area where sales actually dropped was in Aviation Fuel? Interesting, but I have no real guess as to why (except maybe the Airlines are buying their fuel elsewhere, for a cheaper price?). So consumption continues to go up for fuel products as the price goes up? Pretty much keeps saying, it doesn’t matter what the price is, we MUST buy this, so we WILL buy fuel? Not a good thing, need to break that cycle.