thought I would pass along an interesting piece I put together in my spare time Sunday. Here is what I would consider to be a very 'rational' investment idea. What I mean is being short the Canadian dollar vs. its largest trading pair in my opinion represents a trade were both the fundamentals and the technicals agree. Whenever I have been presented with situations like this in the past the trade actually feels easier. To me, It just makes common sense that a tax and spend Federal Government, that was elected on a platform of 'we are absolutely going to create deficits and literally spend money we don't have' isn't going to be good for the capital base of the country. On top of that, politicians within the country's largest oil producing province today slapped a huge tax on any economic activity within the sector.
In my humble opinion, this is literally a potion for disaster......
Considering 'investing' your hard earned money in Canada? maybe hold off on that thought for a bit, eh!
Aka The Rational Investor
(long this FX cross means bias on Canadian dollar0.34% vs US Dollar0.25% )