Archive for the ‘currency’ Category

ILC 2009: Glen Hodgson – What Can We Expect for the Economy, Interest Rates and the Currency Market

July 16, 2009

In talking to Glen Hodgson of the Conference Board of Canada  at the International Livestock Congress, I felt somewhat better about the economy and the outlook through the next 12 months.  Glen is the Chief Economist with the Conference Board of Canada which is Canada’s largest think tank.  In this video, Glen comments on the global recession, the future of interest rates and the volatility of the currency market.  

Check out more ILC 2009 content

Tiffin Conference – Larry Hicks – Managing Risk in the Beef Business

January 23, 2009

Larry Hicks of Cattlehedging.com was one of the keynote speakers at the Tiffin Conference yesterday in Lethbridge. Larry spoke about the necessity of risk management in the beef business. Larry very clearly outlined what hedging is and that there is much more involved than calling your broker to buy or sell futures contracts. He emphasized that you must have a hedging plan in order to really obtain success.

I had a chance to sit down with Larry before his Tiffin speech to discuss some of the pressing issues in the beef business and get a better idea of how he views the beef business going forward.

Risk, Currency and the Canadian Dollar

January 15, 2009

Risk is well known board game, played on a map of the world, in which players effectively bet (take on calculated risk) and play to take over more and more countries and ultimately rule the world.

I am just musing here, but if you were taking stock of countries and their respective currencies, would it be wrong to consider a common sense sort of bird’s eye view of the countries in the world in say five different categories and give strong consideration to the impact of the results of such an exercise?

I would consider:

  1. current status (stage and reputation in economic development and world reputation),
  2. political climate (democratic, responsible, international reputation/relations and involvement, the people/voters)
  3. resources (educated or trained people , access to credit/money, water, food production, oil, metals, minerals, lumber etc)
  4. institutional infrastructure and resources (stability of financial institutions, existence of or ability to create education/training to meet needs)
  5. location (ocean ports, proximity/access to significant markets).

It is hard for me to imagine a combined assessment of the above comparing Canada against most countries in the world, would be anything but in favour of Canada. In a time of growing world population, there is surely going to be an opportunity, a reliance even, on Canada to be a significant contributor in the world economy.

I often run strategic business decisions through a “what if gauntlet” to see how they survive different scenarios. So if this kind of assessment makes sense to you like it does to me, maybe some thought in your business should be given to business and managing risk in an environment where in the long term the Canadian Dollar trades much closer to par with the US Dollar than the flirting with the 70’s that it has been doing recently. Just a thought……