In our view, Canadian investors should embrace currency exposure in equities,
as global equity returns have tended to be less volatile when measured in Canadian dollars.
Even if one wanted to implement a tactical currency hedge to help
protect global equity returns from the headwind of a strengthening loonie, it might be too early.
If history is any guide, election results have had a relatively minimal impact on longer - term U.S. or
global equity returns, according to Bloomberg data and the BlackRock Investment Institute.
The chart above shows the relationship between foreign currency returns and
global equity returns, from the perspective of a Canadian dollar based investor.