Making Money Minute with Ron Hiebert - Currency Risk
The Trump administration has made it very clear that one of its major economic goals is to lower the value of the US dollar against other countries currencies. Devaluation is often used by nations to reduce the cost of their exports and make prices more competitive on global markets. So far Trump’s strategy seems to be working, as the US greenback is down about 10% over the last year. For Canadian investors who own US assets - this is another risk. As the US dollar drops, so does the value of those American investments. Diversification outside the Canadian economy is a good idea, but large currency loses can certainly blunt those advantages. For more information, listen to our Making Money podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.
