Monday, March 24, 2014

Dividend Growth Portfolio, March 2014 Update

2014 has certainly been an interesting year so far. Thus far, as Q1 is coming to an end, TSX has been outperforming the S&P 500 to the tune of 5%. But wait, all performance is not the same. Since January 1, CAD has depreciated some 6% against the USD. Each Canadian Dollar only buys 0.893 US Dollar now. What does this mean for Canadian investors?
  • higher cost of imported retail goods
  • higher cost of fuel
  • higher cost to invest in US equities & other US dollar denominated assets
  • higher cost of cross-border shopping
  • paper gains on US dollar assets
Perhaps this is a good time to convert some USD back to our monopoly money (trust me you'll miss having color coded money if you live in the US long enough!)