Wednesday, July 29, 2009

Canada for Investments

The Canadian economy has performed especially well compared across the board, even to other commodity rich nations like Australia, South Africa, and Brazil. The government has done an excellent job during these economic hardships taking precautions to not create a serious inflationary situation like many other nations, and that is why the Canadian markets will continue to provide good investing opportunities into the future. If you've read other material from my blog you'll know that it is not only the number of dollars you make that matters, but how the value of those dollars(or other currency) stands against other currencies, and also against the price of gold.
For that reason I continue to invest in the Canadian exchanges; their currency and economy are in good standing when compared to others, especially their American neighbors(thats us) and it will provide shelter to us from a falling dollar.

The world's largest Creditor nations like China, Japan, Tiawan, etc, are all located on the Asian Continent, and collectively they hold the largest stake in the US Bond market. I feel as though this will leave them exposed when the currency crisis does occur because so much of their capital is tied into the American Dollar. They have recently starting making efforts to diversify out of US Dollars and into more hard assets like commodities, but none the less they have a huge position. For that reason I believe its safer, at least until the crisis occurs, to have your capital positioned in a country that will not be affected as severely. However, once this crisis does occur China and the other asian countries will take the torch for the long haul, and that is the time that I will begin moving heavily into the asian markets. I believe now is a good time to get into the resource markets that these asian countries will demand for growth, but thats for another post.