Canadian Stocks - Equities in Canada
Canadian Energy Trusts
Canadian Income Trusts
Canadian Royalty Trusts
Canadian Oil Trusts
The Canadian Play – (Company Name Abridged)
One of the Major Beneficiaries of the Rise of Zinc Prices
February 28, 2004, an email message was sent to me from an old friend in
Beijing, China. “Please find out by any chance if you have friends who can
export zinc ores. We have friends who need it as soon as possible”. The next
day, I called him and ask him to explain. He responded that his friends are
seeking for companies that can export zinc as the production of zinc in
China cannot meet the demand. “By the way,” he added, “copper is also fine
if you have the connections.”
Although I currently have no contacts with any industrial metal producers,
this confirms the fact that as the economic growth of China continues, the
demand for industrial metals increases. Investing with the thought of
China’s growth does not necessarily mean that we have to invest in companies
that are listed in China, Hong Kong, or Singapore. Companies that benefit
from the increase demand from China can also be invested if they present
good value, and adequate profiting prospects.
Investing in Canadian Companies
Many Americans seem to ignore potential investment opportunities in Canada.
In reality, investing in Canadian companies would on one hand expose
yourself to more companies related to natural resources, on the other hand
hedge yourself against the expected depreciation of the US dollar and the
appreciation of Canadian dollar.
To learn about an investment firm we have found that specializes in
trading directly in international markets, please contact our investment advisors.
The Canadian Dollar’s Appreciation
The Canadian dollar has been appreciating against the US dollar since the
beginning of 2003. This is partially because of the trade surplus of Canada,
compared to the trade deficit of the United States, as well as the higher
Over Night Funding Rate of the Bank of Canada (current rate 2.25%) compared
with lower Federal Funds Rate of the US Federal Reserve (current rate 1%).
As we probably know, the increase in trade surplus and the increase in key
interest rates frequently result in the appreciation of a country’s
currency. Please see the following graphs for exchange rates between the US
dollar and the Canadian dollar, as well as Canadian trade balance figures.
Canadian Interest Rates
The Canadian central bank, the Bank of Canada, reduced its target rate,
or overnight funding rate on July 15, 2003, September 3, 2003, January 20,
2004, and March 2, 2004.
contact us for
advertisement information and other matters.