The miserable US$ to C$ exchange rate

[bumfie]

While as a U.S. consumer I don't want to undermine the argument for lowering prices, I have to agree with the prior poster who said SPs in Montreal remain a bargain for Americans. Plus, you don't have to deal with LE, price haggling for a second shot or whatever, etc. Also, sorry, but the women in Montreal are better-looking, too....

 

[Doc Holliday]

Montreal is a big draw for how good the adult entertainment is and I can't see that much of an impact unless their dollar falls well below ours.

True, but tourists coming to Mtl for its 'adult entertainment' are only a fraction of its usual foreign visitors. There's more to Montreal than just sex.

Most Canadians going to Mtl won't be affected by this, and'/or may even chose to take their hard-earned dollar to the States since it's now more affordable. However, Americans & visitors from other countries will quite possibly decide to stay home or simply find cheaper alternatives for leisure.

 

[daydreamer41]

Actually, it isn't good, because our economy relies on manufacturing. While it may be temporarily good for some, it will have a deeper negative impact across many sectors.

I thought that Canada also has a lot of natural resource exports, such as Natural Gas, Oil, Potash, Copper, Nickel.

 

[Doc Holliday]

While as a U.S. consumer I don't want to undermine the argument for lowering prices, I have to agree with the prior poster who said SPs in Montreal remain a bargain for Americans. Plus, you don't have to deal with LE, price haggling for a second shot or whatever, etc. Also, sorry, but the women in Montreal are better-looking, too....

Quite true. But the American hobbyist may simply decide to look for bargains in South America & maybe even Europe, like some have already been doing for the past few years.

Better sps or not, the main reason (i believe) why many foreigners decided to go to Mtl for leisure was the considerable difference in the $$. With that gap having since narrowed & now disappeared, it's another one of several reasons to look elsewhere for 'leisure'. Sps in Mtl may be great, but there are also other countries where they're even better......and more affordable.

 

[bumfie]

True, Doc...but the corollary is location, location, location. If Montreal is within driving distance, it remains a bargain relative to flying someplace else.

 

[Jman47]

I remember as if yesterday it was in 2007 when $1.00 cd could buy $1.10 US, I thought a lot buy U.S. dollars at this moment, but I didn't do that, so I kept still miss it today.

I think now is the time, because the Canadian dollar does not equal stayed very long time with the american dollar before it will go down its place initial $1.00CD = $0.80 US. So I think it's very interesting investment, Knowing the right time to buy is very important. Of course, I could not ask you when would be a good moment to do it, because you are not all experts on economics, you are here rather the experts of greek, cim or other

Hello CLAVIE,

It was almost yesterday - March 2009 - when $1.00 CAD was around $0.77 USD and then the CAD began a steady climb to parity. I think the relatively short time period (recent history) in which the USD lost so much value vs. the CAD is what makes everyone a little sensitive to it right now. We Americans have been spoiled by the favorable exchange.

History suggests as referenced here in the complied historical charts: ... http://en.wikipedia.org/wiki/Canadian_dollar ... that if you are in Canada, it is time to buy or hold USD, as inevitably (as historically shown) the USD will rebound. But as you said, we are not financial experts here, we are here for the fun...so my opinion is as good as the next.

What negatively impacts "tourists" to Montreal, if you will, are the fees imposed on exchange and credit cards...because when the dollar is at "par" and you add in the fees - the tourist loses spending money on the exchange.

Have fun,

Jman

PS Few additional comments...
1. bumfie - you are absolutely correct - location is the key when you are within driving distance.
2. Travel is down everywhere - its the weak economy (the upside here is there are bargains out there).
3. Beautiful women are one of Quebec's greatest natural resources

 

[bumfie]

I remember having a great time in MTL for very little when the exchange rate was like 65 cents (four SPs today? hey, why not five!). Then I remember a few years later forking over $1,000 U.S. to exchange and, for the first time, getting less than a grand back. As said, it is all cyclical, though if the rate stays terrible I might be among the tourists who skip my summer trip to MTL

 

[Kepler]

History suggests ... that if you are in Canada, it is time to buy or hold USD, as inevitably (as historically shown) the USD will rebound.

In investments past performance is no indication of future returns.

The story of the last 50 years was the USA's rise as the world's superpower.
Will that be the case in the next 50 years?

It's prudent to diversify.

 

[YouVantOption]

In investments past performance is no indication of future returns.

The story of the last 50 years was the USA's rise as the world's superpower.
Will that be the case in the next 50 years?

It's prudent to diversify.

Into what? The Euro? Not with Spain, Ireland and Greece going titsup. The Yuan? Not until China agrees to stabilize their currency. Not the British Pound (at least sure not until after the election). The Brazilian Reais? Always a pleasure to go see how the country under-writing their currency is doing, and Brazil has much to enjoy.

 

[Jman47]

In investments past performance is no indication of future returns.

The story of the last 50 years was the USA's rise as the world's superpower.
Will that be the case in the next 50 years?

It's prudent to diversify.

One could also state the converse - Past performance is an indicator of future results.
I love investor speak and legal disclaimers...they are what helped create the cloak of paper houses that almost brought the US economy to its knees in the first place. LOL.

I agree it is prudent to diversify, particularly in the emerging and changing world economy. But I also do not believe the dollar will ever be very far in value from the loonie. Past performance - over 70 years worth of history show a pretty steady trend. I do know this...the dollar has always been resilient. The American people have always been resilient. I personally have no doubts. Again, just one man's opinion.

I think the safest statement to make is "who knows?"

Have fun,

Jman

 

[Kepler]

Into what? The Euro? Not with Spain, Ireland and Greece going titsup. The Yuan? Not until China agrees to stabilize their currency. Not the British Pound (at least sure not until after the election). The Brazilian Reais? Always a pleasure to go see how the country under-writing their currency is doing, and Brazil has much to enjoy.

Depends on how much money you have. The Euro is fine, as long as it's in German bunds. I wouldn't touch the Yuan (or the Pound Sterling) with a 10' pole, but others like it. The Real would be nice for a small slice of your portfolio. Also a possibility: real estate, gold, oil, agricultural ETFs, etc.

This is not investment advice, just opinion.

 

[daydreamer41]

The Strength of the US dollar depends on 2 factprs:

1. Whether the USD remains the Oil exchange currency.

2. China remains willing to lend the US.

In the short term, neither is probably likely.

Because the USD is currency which Oil is traded in and the USD is the dominant currency in banks and people's possession (2/3 of the weath is in USD), a major fall in the US dollar will affect the entire world. China and India have made major gold purchases in the last couple months, probably to give themselves some diversification.

Both China's and India's economies are not yet large enough to threaten the dominance of the US economy. But both counties' economy are developing and will become a driving force in the world's economy. I have heard some economists say maybe in 50 years that China and India may be among the leading economies of the world.

Also, the EUR is not so strong because of Greece. Canada and Austrailia are both smaller economies than the US because of their populations, but they are both doing good jobs in focusing their attentions to reducing their debts.

 

[daydreamer41]

True, but tourists coming to Mtl for its 'adult entertainment' are only a fraction of its usual foreign visitors. There's more to Montreal than just sex.

Most Canadians going to Mtl won't be affected by this, and'/or may even chose to take their hard-earned dollar to the States since it's now more affordable. However, Americans & visitors from other countries will quite possibly decide to stay home or simply find cheaper alternatives for leisure.

Where are the better places? I've been to Montreal enough times, I know my way. Other palces would be a challenge.

 

[smuler]

globally speaking the usd is not 'weak', rather, the cdn is strong. look up the cross rates for both currencies vs. the euro, sterling & yen for the past 3 years.

Usually, I go to Amsterdam or the FKK clubs for fun, and go to Montreal when the US dollar is worth nothing against the Euro

I will return to Europe in a month, where the dollar seems to slowly be getting stronger

3 weeks later will be F1 weekend

I am hoping for a miracle (1.10-1.15 ) , but I am sure that it will not happen


Best Regards


Smuler

 

[Chigen]

Would you rather have a lower dollar and a shitty economy? Currencies go up, and it goes down from time to time. Take advantage and travel, or by stuff online.

 

[Doc Holliday]

Have to love the exchange rate these days. I have been going to vegas now for approx 12 years and i remember about 12 yrs ago on my first trip to buy $2500. US it cost me approx $4100. canadian. Those days are gone and hopefully gone for a long time. It just makes the trips a much better bang for the buck. Here is hoping the canadian dollar smashes thru and becomes worth more then the US dollar, Spearmint rhino(stripclub) here i come. I bet the boys coming from the states to montreal aren't quite as happy about this as i am

Ditto. I can't wait to start spending my winters in Florida once again. Might actually be house (or condo) hunting this time around.

 

[Marlin Perkins]

The currency is high, the currency is low. Thats the way it has been going and thats the way it will always be. The It is mid term election time in the US. The government can not afford to have a weak dollar at the moment. You can be sure that there will be stimulus spending to shore up the dollar.

 

[Kansas Frank]

Even if the Canadian dollar were to reach C$1 to US$0.80, I think Hobbyists from the States would be better off going to lovely Montreal for their fix and to enjoy everthing else Montreal has to offer. (The good thing is I have more of my relatives who are Canadians visiting us in the States.) As I see it, the Hobbyists and the SP's are on an equal footing in Montreal. Whereas, in the States, the Hobbyist is subject to black mailing by the SP's or their pimps and most LA are arresting not only the SP's but the Hobbyists as well and Posting the Hobbyists' photos in public places to shame them and also charging them with crimes and impounding their vehicles, etc. Montreal, hopefully, will always be a safe place for Hobbyists and SP's. The invisible Hands of supply and demand will bring prices in line with economic realities. Fortunately, Canada's economy seems much stronger than that of the US, which is stagnant and continue to decline for the middle class and the poor. As always, the rich gets way richer. But may Montreal live forever with her lovely SP's.

 

[Aeolus]

I bet the boys coming from the states to montreal aren't quite as happy about this as i am

Bingo! We have a winner. No wonder you like to go to Las Vegas.

It's always nice when it costs less, but a few extra dollars isn't going to force the cancellation of any trips. The dollar would have to lose massive value before that happens. Even when the loonie is doing well, Montreal still offers a better value than local sex markets in the northeast. And, as Kansas Frank alluded to, Canada will remain a destination for those of us who would lose our jobs if our names were ever to hit the local papers for patronizing prostitutes.

As an aside, does anyone know what percentage of clientele in Montreal are American? I'm going to have to start asking the girls.

 

[Kansas Frank]

Or for at least the next 10 to 15 years and then after that i will be to old to care, unless of course sp's can visit old age homes

JJ -- once a Hobbyist, always a Hobbyist. It's like once you've tasted great Scotch Whisky, or whatever your choice of poison, you'll never give it up as long as you're alive. There will be SP's who will appreciate your maturity and you theirs.