Dow Closed at a New High — Or Did It?
Dow Closed at a New High — Or Did It? Thursday April 19, 2007 Yesterday, the Dow closed at a new high above 12,800. But if you were an investor from Canada or Europe, then it might not feel like a new high. Why? Because the value of the dollar has been declining relative to other currencies. On February 20, when the Dow hit its previous all time high of 12,786, the U.S. dollar was worth 1.17 Canadian dollars. Yesterday, the U.S. dollar was only worth 1.13 in Canada. This means that Canadians who hold U.S. property, like stocks, perceived a decline in that value. For example, Americans who bought a fund that mirrored the Dow on February 20, and sold it on April 18, would have gained .4% (assuming no sales charges, taxes, etc.) Canadians who did the same thing would have lost 3%. That’s because the U.S. dollar fell a little over 3% against the Canadian dollar during that time period. European investors would have als
