Buy the Loonie?
This should bode well
Seems like a contrarian idea. Canada has a housing bubble in certain cities. Oil prices are hurting three of ten provinces. Debt is expanding and economic growth has been weak. Yet the Economist Big Mac Index and the CFR Mini-Mac Index has the CAD (or Loonie) as undervalued against the USD.
The Economist Big Mac Index has the CAD undervalued by 10% and the CFR Mini-Mac Index by 20%. Strong commodity flows could be forecasting a rally.
Honestly I hate the idea so much I think the trade will probably work.