Taking Stock with Steele
Read our newsletter below or contact us to subscribe
Taking Stock with Steele is our newsletter where we share our insights and expertise. Our goal is to ensure our clients are well informed. We shift through the noise and only bring important topics of discussion and planning points that are relevant and useful. We believe Knowledge Pays and we want our knowledge to pay for you.
Historically, the only refuge from this US dollar depreciation was to avoid individual US stocks, leading to a potentially more concentrated (and risky) portfolio, or to buy currency-hedged US equity exchange traded funds (ETFs) that provide diversified exposure to the US. Thankfully, CIBC has recently launched Canadian Depositary Receipts (CDRs) which allow Canadian investors to attain exposure to select individual US stocks but this exposure is denominated in Canadian dollars.
One of the market mantras over the past few years is that there were no alternatives to equities because cash and bond yields were historically low and didn't offer attractive returns. Naturally, "alternative investments" flourished as a true alternative to equities during this period but only a small fraction of investors had/have access to alternative investments. The market weakness experienced in 2022 has shifted thinking from no alternatives to plenty of alternatives.