If USD falling should CDN investors steer clear?

Not agreeing with the analysis below, just posting it for your consideration.The question remains whether oil prices stay high (I tend to think so, unlike this analyst; I still feel oil is undervalued due to its supreme importance)...the Canadian dollar's rise is definitely commodity fueled.In any case, I am not sure I would bother investing any dollars, Canadian or not, in the US at this time when there are much more attractive markets to invest in.

The Canadian dollar has seen an unbelievable run due to rising raw material prices (commodities make up approximately half of Canada's exports).  Spec interest in the currency spiked it to 1.10 on the U.S. dollar and created the largest move in under a year in the currency's history - over 30% since February!  Look for the Canadian, and the Aussie dollar to see significant retracements in 2008 as tops in energy and metal prices, as well as a strong dollar, force specs to flock for the exits.

 

"a strong (US) dollar"? ON WHAT?

 

just wait until OPEC and the other oil producers get tired of being paid in increasingly worthless US$'s and switch to the Euro OR the ChiComs, Japs and Arabs dump our debt they are holding OR BOTH.

 

it will be LOOK OUT BELOW!!!

"In any case, I am not sure I would bother investing any dollars, Canadian or not, in the US at this time when there are much more attractive markets to invest in."

Given the current ecconomy, I am considering playing it really safe and focusing on paying down my mortgage this year rather than gambling on this market. My extra principal payments would get a gauranteed 5.05% return (essentially compounded for the remainder of my mortgage and never taxed). Of course that is a very boring "investment" and part of me wants to take more risk.