CurrencyShares Canadian Dollar Trust (AMEX:FXC)

hp52ca (< 20) Submitted: 10/27/2007 10:48:08 AM : Start Price: $101.65 FXC Score: +5.38

If you are concerned about the dollar declining in value over the next several yeaars (as I am), this is an excellent place to park cash (consider it a Canadian "loonie" money market, unfortunately with transaction costs). The FXC leader (check out the portfolio of donnemv) added this stock about in Dec 06 and it is up about 14% vis-a-vis the dollar (i.e., the S&P is down relative to the "loonie" - vacations in Canada are more expensive for U.S. dollar holders, one symptom of this). Because of macro economic factors - current economic boom in southeast and east Asia, including China, global trade issues, weak and weakening dollar, rising energy costs (along with global issues like water and warming, and Canada's extremely strong energy exports), along with U.S. economic problems in the near and long term (social security, medicare and medical costs, unfunded pension liabilities), I am VERY skittish about the longer-term health of the U.S. economy and dollar. FXC is at the least a better parking place than U.S. dollar-denominated money markets. I would say the same thing about FXA (Australian dollar) and, on the verge, Japanese Yen (FXY) because of a potential unwinding of the "carry trade". Check out my portfolio (hp52ca) for a more recent purchase of FXA and FXC; these are inversely correlated with the strength of the dollar, and in the short term at least have validated my concerns.
JAS