I own some Canadian Deposit Receipts (CDRs) for my short term 9-18month trades. These are securities that allow Canadians to buy internationally listed stocks with Canadian dollars and on Canadian exchanges. If you’re investing in US equity securities through CDRs like I have been, here’s something to think about as you optimize your strategy into the second half of 2026: CDRs are structured to remove/reduce currency fluctuation risk. But the strategy is net negative over time, which is why most suggest to hold the underlying security if you’re investing for the long run. However, when CAD gets stronger against USD, the mechanics of each security means you end up being exposed to MORE underlying shares. So why invest in CDRs now? 1 - RBC Asset Management has made the case for a flattening and strengthening of CAD through 2026 and into 2027, respectively. 2 - US stocks are on fire, having delivered some of the strongest returns YTD, and the driving factor of the current AI infrastructure build-out. Additional things to consider: - no options on CDRs - no after hours or premarket trading Highlighted CDRs of interest to me: $NOWS $GOOG $MTSU $LLY $MU $NFLX Do you own CDRs?
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