If you look at the chart of Canadian National Railway ( $CNR (-0,14%) ), it is noticeable that the share price is at the same level as it was over 5 years ago. In the meantime, the company has grown well on paper and has been able to increase profits and dividends solidly.
Between 2021 and 2023, the CAD rose significantly against the EUR, making the share more expensive for European investors than for Canadian investors. This also resulted in greater losses from 2024 to the present day, as not only did the price in CAD fall during this period, but the EUR also appreciated against the CAD at the same time.
This now offers a good opportunity to expand the position in the portfolio as currency trends are usually cyclical. As a European investor, you now have an advantage as you can buy shares more cheaply and also benefit from the reversal of the currency trend in the future.
Edit: The Canadian economy and thus also the currency correlate strongly with commodity prices, especially oil and gas, as the country is very rich in resources and generates a large part of its economic output from them.
