Yesterday, the Toronto Stock Exchange (Canada’s equivalent of the NYSE) jumped 2.2% to close near a new record high. They’re dancing in the streets in Toronto and so should you!
Here’s what propelled yesterday’s stock prices higher:
— Gold bullion got within striking distance of the $800.00 U.S. per-ounce level. Quality gold stocks like Goldcorp, Newmont, Barrick and others are all listed on the TSX.
— Oil prices jumped $4.00 a barrel, as crude closes in on $100.00 U.S. a barrel. The TSX is home to the some of the biggest and best managed oil-producing companies.
— Interest rates in the U.S. fell one quarter point, bringing the U.S. dollar down, too. And where was money running to yesterday, as the greenback fell to yet another record against the euro? Money ran to gold and oil stocks… all listed on the TSX.
Yes, I’ve been preaching the benefits of Americans investing in TSX for two years now as a play on rising commodities prices and the declining U.S. dollar. But something is happening now:
The secret, my dear reader, is out.
Investors are moving big-time into Canadian stocks to profit from the bull market in commodities and to profit from the simple decline of the U.S. dollar against the Canadian dollar. Yes, it’s true. The Canadian dollar has moved to a new one-hundred-year high against the greenback!
I continue to be bullish on gold stocks and oil stocks because I see gold bullion and crude continuing their rise in price. And there’s no better place to buy these stocks than on the TSX… especially for American investors looking to profit from the clear decline in the U.S. dollar.