What Will Happen to the U.S. Dollar?
Canadian dollar surges to highest level since 1977:
It ended the day at 91.79 cents U.S., the loonie’s highest level since Oct. 11, 1977.
This made me think back to 1998-2001, when the U.S. dollar was worth CAD$1.45, then $1.50 and briefly even CAD$1.60. It seemed to be in a permanent uptrend. At the time we had about $20,000 of American money and @ $1.50 exchange rate that little pile was worth CAD$30,000.
Around 2001-2002 the current downtrend began and I got worried about US$ and just wasn’t sure what to do with the money. So I asked a friend of mine – an institutional broker who’s given me good money advice in the past – about what we should do with it. He told me to convert US$ into Euros. I believed him.
A Euro was worth about US$0.90. Converting to Euros meant either opening up a bank account in Europe or storing physical money in a storage box. That seemed like sooo much trouble. In addition, my husband was sure that the Euro wouldn’t last. See, he doesn’t believe in a unified Europe. That’s a topic for a private conversation or possibly a separate post, but the point is – we never exchanged our U.S. dollars into Euros. It was like: “a lot of trouble for what?” who knew that it would all happen the way it did. “Hindsight 20/20” and all that jazz. (2 cliches in one sentence, try beating that)
If I had followed my friend’s advice, today we’d have approximately 22,000 Euros, or $32,705 Canadian dollars at the current exchange rate. Instead, US$20,000 is worth approximately $22,000 Canadian. So we lost about $8,000 before inflation. Not to mention that the taxes on our US$ income were paid at a higher exchange rate. Laziness is expensive.
We didn’t literally lose that money because over the years we bought stuff from the States on a US$ credit card. We spent about $7,500 and still have about $13,000 left.
And I’m still not sure what to do! I didn’t listen to my friend then, but I’m listening to all and any opinions now. What should we do with our U.S. money?