A Case For The Canadian Dollar

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Investors have a lot to be worried about right now. Is the euro going to break apart along with the EU? What in the world is going to happen to the Dollar and the U.S. Treasury market? The politicians are making it clear that a U.S. default is not off of the table. Growth in developed economies is anemic, at best, while debt levels in the EU, Japan and the U.S. are nothing short of ridiculous. What is the average investor to do? One idea that seems to make a lot of sense is diversifying into foreign currencies. While the Swiss Franc is an obvious choice, that train left the station a long time ago. If you buy now, you are going to pay up big time! The Swiss Franc Trust ETF
FXF
is up over 27% in the last 52-weeks. The Canadian Dollar ETF
FXC
, however, is only up 9.39%, but has a beautiful long-term chart and is likely to continue to move higher. Canada's economy is very healthy due to their abundance of natural resources, particularly oil. The country also has major mining operations that harvest base resources along with precious metals. Combine these facts with a very attractive debt profile compared to other developed economies, and the Canadian Dollar looks like a compelling investment opportunity.
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Posted In: Long IdeasCurrency ETFsForexTrading IdeasETFs
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