CDRs to US - Stocktrades Canada

Hi Dan,

I feel that I made a mistake buying CDRs instead of the US stocks themselves. If you were in the situation, would you just sell your CDRs now and convert into the US counterparts?

Thanks!

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Asked on November 3, 2024 2:00 pm

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I'd be a bit hesitant at this point to transition a large amount of money from CAD to USD just because of the weakness of the CAD versus the USD. I buy USD every week with my weekly contributions, which allows me to smooth out currency fluctuations. But I also realize right now I am buying USD at a historically weak time. Typically, the dollar tends to hover around the $0.75~ mark. We're now sitting at $0.72.

If you're looking to transition out of CAD and into USD, you could do it over a longer duration of time to smooth out currency risk. It is a difficult decision to make, and one that is solely dependent on the investor.

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Posted by Dan Kent

Answered on November 5, 2024 8:21 am

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Since the CAD is pretty weak right now, does it make sense in the short term to buy CDR and wait until CAD gets stronger then sell CDR and buy USD?

(Patrick Huang at November 13, 2024 8:38 pm)

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There is no guarantee that the CAD gets stronger though. I would argue with a Trump administration it will get weaker before it gets stronger. I'm not necessarily an expert on currency movements, but Trump's policies are definitely structured to strengthen the USD

(Dan Kent at November 13, 2024 10:11 pm)

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