| By :
Molly Wider
Now is a great time to build your portfolio. With the Canadian loonie sitting close to parity with the US greenback for most of March, economists figure now is a good time to diversify your portfolio and invest in foreign currency investments. Due to the fact the Canadian market is dominated by three main sectors, energy, mining and financials, it's a good idea to consider investing in foreign stocks, especially in sectors such as technology and health care that don't have a lot of representation in Canada. Now is a good time as the dollar will buy more, enabling you to add that diversification of foreign stocks that you have been thinking about. You may also want to consider cashing in on the good deals the euro is offering due to Greece, Portugal and Spain's economic troubles. The euro has lost much of its value falling around the $1.34 CAD mark, while a slow recovery in the UK means the British pound is also down to $1.53 CAD when it is generally above the $2 CAD mark. A high loonie also presents a good time to open up foreign bank accounts for people who spend a lot of money in other countries, travel often, are paying off mortgages or who have children at foreign universities. If you own property in the United States and have a US mortgage, now would be a good time to open a US dollar bank account and start adding money to it. The Canadian economy is improving faster than expected while other economies continue to struggle with ongoing problems. The last time the loonie was at parity with the US dollar was back in 2007. It ended up reaching a high of $1.10 US before it began receding. This could quite easily happen again due to our rapidly recovering economy. There are many ways you can diversify your portfolio and increase your exposure to other foreign equities and investments. If you're considering branching into any foreign territory, it's important to assess your potential company the same way you would assess a Canadian company. This changes, however, if you want to invest overseas. Diversity should be an investor's primary focus. If you are considering an investment leap of your own or are looking to diversify and are in need of some financial assistance, it may be a good time to even consider a loan to help you reach your investment goals.
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