Q: The Canadian dollar has been up and down lately against the U.S. dollar. When buying a U.S. stock, would that stock then have to rise 34% to cover the exchange rate before I realized any gains? Thanks.

A: The short answer is no. $1.00 U.S. equals $1.34 Canadian. You get back the exchange differential when you sell. If the U.S./Canada exchange rate is about the same as when you bought, you’ll only lose the cost of the trade, perhaps 1%.

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Bear markets offer opportunities for investors

The traditional bear market threshold is a 20% drop from a market peak. And although, in our view, looking at past market movements is no guide to what happens next, it’s interesting to note that stocks have always bounced back from market downturns.
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AbbVie diversifies for future growth

We continue to see attractive investment opportunities for our subscribers in top drug stocks—and that includes AbbVie Inc. At the same time, over the years, we’ve found that spinoffs are about as close as you can get to a sure thing in investing. It’s one… Read More