As of now, the Canadian dollar is nearing break even with the United States Dollar. On Friday, the exchange rate for USD 1.00 equated to a little less than CND 1.05. This shows the strength in the Canadian currecency over the US ones. Remember ten years ago, when the US Dollar was equivalent to CND 1.50?
The power of foreign exchange is amazing. If you traded USD 100,000.00 into CND 150,000.00, today you would have around USD 143,000.00.
If you invested USD 100,000.00 into an investment returning ten percent per annum, you would have USD 260,000.00 today.
However, if you had bought into some sort of Canadian investment with an average ten percent appreciation each year, your profit would be much more than that. So let us combine the two and create a synergy:
USD 100,000.00 > CND 150,000.00
CND 150,000.00 x 1.1^10 = CND 390,000.00
Today, CND 390,000.00 would equal roughly USD 370,000.00 at a USD 1.00 = CND 1.05 exchange rate.
Your internal rate of return would be approximately 27% and not just the usual 16% if your investment remained in the United States.
All in all, foreign exchange (forex) and general investing creates an unbeatable synergy. Your risk might even be lowered as your investments would be diversified, not all focused in your home land.
Now the question is, when will the US and Canadian Dollars be 1 to 1…
All about ADHD
15 years ago
2 comments:
That's good to hear, but a few years late for me personally, lol. I sent my girlfriend at the time around $50 from the US to CA which turned out to be a little over $60. I wasn't happy about that.
Hey,
Yeah, you know what?
I think it's quite amazing. Now it's quite cheap for me to go to the United States and buy nice clothes. :)
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