Canadian Dollar Experiencing Strong Fundamentals, According to Leading Financial Site Penny Stock Detectives

Danny Esposito, editor for Penny Stock Detectives, points out that many countries around the world are struggling with slowing economic growth.

New York, NY (prHWY.com) May 16, 2012 - Danny Esposito, editor for Penny Stock Detectives, points out that many countries around the world are struggling with slowing economic growth. In his recent Penny Stock Detectives article, he discusses the issues many central banks face that range from how to improve jobs growth to whether or not to cut interest rates. Esposito argues that the Canadian economy is experiencing good growth with the central bank of Canada contemplating raising interest rates.

"Canada's most recent job numbers for March saw a shockingly strong figure of 82,300 jobs created, sending the unemployment rate down to 7.2%," notes Esposito. "This was the largest rise in jobs growth in three years. Canada's unemployment rate is also below many nations of the world, including the U.S."

Couple this with the fact that the inflation rate in Canada is running well above three percent, says Esposito, and thus well above the central bank of Canada's comfort level, and an investor can understand why the central bank of Canada is contemplating raising interest rates, which of course, is supportive of the Canadian dollar and will see the Canadian dollar rise against other currencies.

There are many other reasons to like the Canadian dollar, according to Esposito. The central bank of Canada has not participated in the money printing parade that has taken place in many other parts of the world. The country's debt-to-GDP is well below many other countries of the world as well, which is why the Canadian dollar is one of the better performing currencies in the world.

Besides commodities and precious metals, Esposito believes there is another advantage to investing in Canada. Since the Canadian dollar has remained strong relative to other currencies of the world, the large industrial companies and Canadian companies in general are taking advantage of the strong Canadian dollar to import productivity-enhancing machinery and technology to make the goods and services they're selling more competitive on the world market.

Investors have the opportunity to buy not only mining and agricultural companies in Canada, but also leading-edge industrial firms, believes Esposito. Not only are investors in Canadian stocks buying quality companies, but they also indirectly own a currency that Esposito is very bullish on, as is evidenced by the above: the Canadian dollar.

Diversifying a portfolio is critical to enhancing an investor's returns, says Esposito. He believes that the Canadian dollar and Canadian corporations are a great way of achieving that objective.

Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.

To see the full article and to learn more about Penny Stock Detectives, visit www.pennystockdetectives.com.

The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at www.pennystockdetectives.com.

Sasha Cekerevac, BA, and Danny Esposito, B. Comm., lead editorial stock analysts at Penny Stock Detectives, in conjunction with stock market guru George Leong, B. Comm., have just updated their breakthrough video, If You Missed Apple, Shame on Us; If You Miss This... which highlights a company these stock analysts believe looks very similar to Apple Inc. in its early days. To see the video, visit: http://www.pennystockdetectives.com/video/pt/index.php?sb=PRESS.

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Tag Words: gdp, canadian dollar, penny stock, stock market

Categories: Finance

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