INVESTMENT STRATEGY

With our lacklustre loonie showing no sign of bouncing back to parity anytime soon,  many investors may be reluctant to even  consider U.S. purchases. The bottom line,  however, is that U.S. equities can be a  smart part of any portfolio investment strategy.

Diversification by sector

The U.S. economy is buoyed by many  global powerhouse companies and  industry-leading titans. Not only that,  but the U.S. market is much more broadly  based than our domestic market.  Here at home, the market is dominated  by financials, energy, and materials stocks.  South of the 49th, the biggest players include  entertainment giants, pharmaceuticals, tech  firms, and consumer brands that are  instantly recognizable around the world.

 Diversification by currency

Even when the exchange rate makes for  an extra-expensive Disney holiday, your  portfolio can still benefit from exposure to  the U.S. dollar itself. For example, investors  who currently hold U.S.-dollar-denominated  assets purchased when our dollars were at  parity are seeing their returns increase as  the Canadian dollar declines.

Unbiased investing

It’s human nature to be more comfortable  with things that are familiar to us. That’s why  there is a tendency for Canadian investors to  overload on our own domestic investments,  a phenomenon known as “home country  bias.” As your advisors, we can help you  consider investment opportunities on their  own merits, regardless of country of origin.

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