The Canadian dollar closed perfectly at par with the U.S. greenback Thursday, spurring much chatter among investment advisers about exactly where the currency is going next.
Currency forecasters spent much of 2010 predicting a stronger Canadian dollar.
Two seasoned Vancouver money mangers now say this could be the ideal time for individual investors to reallocate the currency mix in their portfolios and to buy more American assets.
The fact the loonie’s perfect parity with the U.S. dollar is happening virtually on the cusp of the new year is doubly good for those individual investors who look at their portfolios infrequently but give a glance to their financial records when a new year arrives.
“Until recently, we’ve been way overweight in Canadian markets, both from a currency point of view and also from a markets point of view. I would say that we’re going back to a 50-50 mix,” said Thane Stenner, who is director of wealth management at Stenner Investment Partners, which is part of Richardson GMP Ltd.
North Growth Management CEO Rudy North similarly told Business in Vancouver Thursday he believes the Canadian dollar’s bull run is running out of steam.