Anybody doing anything to protect themselves from this massive unstoppable CAD rally that feels like it's been going on forever? What are we gonna do if this thing gets to par or worse??? Bouch
Currency futures as a hedge or pull out and trade CAD markets. Other than that, pray. I'll be looking to do something if CAD/USD breaks 0.9.
My approach is to view my trading business as a 30 year venture. Starting around 1995... $CN 75 to 65 to 87... So only about 1%/year factor last decade... and will be less over 30 years. If you hedge the $CN now... You are making a ** directional bet ** that $CN will keep rising. The hedge you put on profits if it goes to 100... loses if back down to 80. It's exactly as much of a gamble than not hedging. The only reason you should hedge... Is if there are ** widely disproportional ** outcomes for your business from up/down... Such as you might actually go out of business. This can be the case with a goods exporting/importing company with thin margins... But would not typically apply to a trading firm. rm+
If you own property in Canada then you are gaining US Dollars. I live in Vancouver and not only has my place gone up in Canadian dollars it has increased even more in US Dollars, which is the worlds currency. I expect real estate in Vancouver and the CAD to continue to climb as the 2010 Olympics gets closer.