Episode Summary Why did the Canadian dollar stop behaving like oil's sidekick? In this episode, John and Jane break down the forces that drive a floating currency and explain why the traditional "petrodollar" textbook explanation has broken down in recent years. They reveal how holding a foreign asset exposes you to two completely separate returns—which can easily wipe each other out—and expose the single largest invisible fee in retail investing that your brokerage likely never highlights on your statement.

Key Concepts

• The Exchange Rate as a Relationship: An exchange rate is simply the price of one currency in terms of another. It is not an inherent quality of being "strong" or "weak"; the Canadian dollar can easily rise against the US dollar and fall against the Euro on the ex ...