The Best Two Ways to Play Canada’s Economy, Currency And Natural Resources

Tony Daltorio, Investment U Research

A vast amount of natural resources. A love of hockey. A penchant for bacon. And liberal use of the word “eh.”

All are associated with Canada, of course. But America’s neighbor to the north boasts another fine trait: an efficiently run economy.

You see, although Canada borders the United States, it takes a completely different approach towards economic policy.

That showed strongly just recently when America stoked protectionist fears by slapping stiff duties on tire imports from China. Yet days later, Canada unveiled plans for a significant move in the opposite direction. Canada aims to abolish all remaining tariffs on imported machinery and equipment used by domestic manufacturers, saving Canadian manufacturers C$250-300 million a year.

And while the United States dithers over

An investor buys an idea and waits for that idea to materialize. It might take minutes, hours, days, sometimes even years for that idea to materialize. The longer the time frame, the more likely the idea will materialize profitably, according to an recent article in May/June 2009 issue CFA Institute Magazine.

After it cut its outlook on the United Kingdom’s triple-A credit rating to ‘negative’ from ’stable’, last week Standard & Poor’s raised worries that the United States could lose its “AAA” rating. On May 27, Moody’s Investors Service, another ratings agency, said the U.S. government’s AAA rating is stable despite the country’s swelling debt. But it did not completely rule out a downgrade.  

A reassessment of the economy and the government’s debt could put “negative pressure on the rating in the future.” The UK faces a 33% chance of a

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As the U.S. dollar depreciates because of  increased government spending, investors may turn to exchange traded funds (ETFs) to defend their wealth. Here’s how.

The U.S. dollar is under attack and there are several factors that are eating away at the dollar’s strength, remarks Ron DeLegge for ETF Guide. The Chinese yuan is being pushed to be included in the IMF’s basket of fund payments for bilateral trades, and the currency may overtake the U.S. dollar as the world’s reserve currency. The U.S. government is also continuing its defacement of the dollar by increasing spending and deficits.

WisdomTree Dreyfus Chinese Yuan (CYB): up 2.7% year-to-date
PowerShares DB US Dollar Index Bullish (UUP): down 2.6% year-to-date
PowerShares DB US Dollar Index Bearish (UDN): up 1.8% year-to-date

How can an investor protect one’s wealth against a falling dollar?

Currency Funds. These types of ETFs let you capitalize on

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