Over the next few months, you’re likely to hear a louder debate growing around the Chinese currency, the Yuan, and how it is “pegged” to the U.S. Dollar … meaning that it doesn’t dynamically flow in value like the currencies of other industrialized countries like Canada, Australia, the UK etc.
The North American economic picture isn’t quite as rosy as the media is currently reporting.
There are long-term, underlying fundamentals at work that are changing the landscape of North America.
Part of that is due to the fact that over the last 20 years China has been able to sell a lot of products to U.S. and Canadian consumers by artificially holding the value of their currency down.
This makes their exports cheap for Canadians who enjoy buying Plasma TV’s for under $1,000 and T-Shirts at Old Navy for $3.
The effect this has on our economy is pretty interesting of course. We’ve gradually changed from producing many of our own products to importing theirs.
This is a slippery economic slope and definitely impacts our lives.
You see, countries that are NET exporters or goods typically have a major political and economic advantage over those who don’t.
What is that?
CASH in the bank! Lots of it.
Check out this quick video we shot this morning at a new strip mall going up in Oakville … almost every single store is “service based”.
It’s a far cry from the strip malls I remember growing up, you know, the ones with a men’s store, bakery, butcher, women’s fashions, Radio Shack, local Jeweler, furniture store, local hardware store and children’s clothing store.
As an investor, these global trends play an important part in the places you choose to invest.
Never has it been more important to choose communities with diverse employment as a means to buffer your investments from the rapidly changing employment landscape.
Is Canada still a great place to invest. Absolutely.
Our laws, people and economy are relatively speaking … first class.
Do you have to have an even deeper understanding of global market dynamics when investing locally … YES.
Enjoy the video….
Until next time … be a Renegade!