Topic: How To Invest

What is Pat’s commentary for the week of March 7, 2023

Article Excerpt

Here’s a question that many investors may have wondered about in recent months. It sounds straightforward but there may be more to it than you’d guess. Q: Pat, I believe the Canadian dollar and others will rise against the U.S. dollar. Is there a way for me to gain from a rise in the Canadian dollar against the U.S. dollar? What about for other major currencies against the U.S. dollar? Thank you. A: As a general rule, we advise against currency speculation for many of the same reasons we advise against, for instance, options trading and bond trading. It’s a rare investor who makes enough profit from these activities to compensate for the costs involved, not to mention the losses that come from getting it wrong. Our longstanding advice is to invest mainly in well-established companies; spread your funds out across most if not all of the five main economic sectors (Manufacturing & Industry, Resources & Commodities, Consumer, Finance, and Utilities); and downplay…