In a recent publication in the Globe and Mail, Scotia Capital’s portfolio strategist Vincent Delisle stated that Canada represents 3.7% of the MSCI World Index (source: Globe and Mail Tuesday, September 8, 2009 02:10 PM, “Buy Canada, says Scotia”).

While Canada is undoubtedly a great place to invest, to achieve broad portfolio diversification it is generally recommended to have exposure in both the US and internationally. However, when we invest outside of Canada we face what is known as “exchange rate risk”. Specifically this is the currency exchange rate between Canada and other countries. In my opinion, it’s an important consideration for your portfolio. Continue reading »