Investing in US stocks with weak loonie

[Manhattan]

What's beyond opinion of investing in the US market with a worthless loonie?

There's also lot of US funds offered in Canada that have two options - regular and CAD-hedged. The CAD-hedged US funds have done extremely poorly this past year relative to the non-hedged funds given the sinking loonie. But assuming the loonie is at or near bottom, does it even make a difference if I'm purchasing regular vs CAD-hedged funds?

Gonna convert everything to USD next time it hits par. :banghead:

[JustinL]

That purely depends on what direction you think it's going. If you think it's the bottom, then now is the time to get back into CAD. If you think there is more to go, then go USD. You will lose a bit on transaction costs going to USD, so factor that in as well.

Also see this thread:
http://forums.beyond.ca/st/395339/investing-in-us-with-low-cdn-/

[Feruk]

Are you a currency trader? If not, why are you even considering CAD-hedged funds?

I always invest in US equities in US dollars. If you own oil companies, that's your natural anti-USD hedge. You'll lose on the exchange rate and make big returns in oil stocks instead. Balance. Besides, who knows how low the loonie will go. It could take a decade to turn around.

If you're not a currency trader, don't try to guess like one.