Shorting the Loonie - Terrible Idea

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There is an article over at Barron's in which the author feels that Canada's dollar is way overpriced and that forex traders should seriously consider shorting the loonie.

I'm very skeptical of this move. Canada is fiscally sound and is currently in the middle of a resource boom. These two things are major reasons why I wouldn't be against our strong loonie any time soon. That being said, our economy is very much tied to the US economy. As a result, should a recession strike south of the border, we will definitely feel more than just the aftershocks.

This will probably be my last post for 2007. I want to take this opportunity to thank all my readers for sticking with me and reading my posts. It's really appreciated.

Hopefully 2007 was a great year for you guys. Let's hope that 2008 will be even more prosperous!

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