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3 reasons to consider a Stocks and Shares ISA over a Cash ISA in 2025 Not all ISAs are created equal. And if one is serious about building wealth, it’s important to choose the right investment vehicle. Cash ISAs remain popular. Looking at government figures, there’s currently around £300bn stashed away in these products. If one is serious about building wealth, however, a Stocks and Shares ISA could be smarter. Here are three reasons to consider this type of ISA instead in 2025. Investment funds One advantage of Stocks and Shares ISAs is they (usually) offer access to investment funds. These products provide diversified exposure to the stock market and tend to generate much higher returns than cash savings products (like the Cash ISA, although admittedly it’s a safer option) over the long term. An example of a fund (and one I think worth considering) is Fundsmith Equity. This is a popular product that is invested in about 30 different companies globally. While this fund has had its ups and downs over the years (like all stock market-based investments), it has performed very well over the long term. Since its launch in late 2010, it has returned about 15% per year (before platform fees) – trouncing the returns from cash savings. Investment trusts Stocks and Shares ISAs also offer access to investment trusts. These are similar to funds by providing diversified exposure to stocks, however, they’re traded slightly differently, and often have lower fees. One investment trust I’ve invested in (and I think is also worth others considering) is Scottish Mortgage. This is a growth-focused trust that invests in disruptive businesses like Nvidia and Amazon (it has nothing to do with Scottish mortgages!) This trust can be volatile at times due its focus on tech stocks. However, over the long term it has done well, delivering a share price gain of about 430% over the last decade (roughly 18% a year). Individual stocks Perhaps the biggest advantage of Stocks and Shares ISAs, however, is that they offer access to individual stocks (both UK stocks and international ones). In other words, you can invest in individual businesses. This is riskier than investing in a fund or investment trust. Because every company has its own risks and if something goes wrong, its share price is likely to fall. On the flip side however, there’s potential for much higher returns. With stocks, it’s possible to make 100%, 200% or more from a single investment in a year. One example of a stock that I believe is worth considering today is Uber (NYSE: UBER). A US-listed business, it operates the world’s largest rideshare platform. This company is growing at a rapid rate at present. In 2024, the number of trips booked on its platform rose 19% while the company’s revenue jumped 18%. Looking ahead, I see plenty of growth potential. While the company operates in many countries across the world today, it still has plenty of room to expand to new cities and offer new services (such as train/boat rides). Now, this stock can be volatile at times. Recently it has been swinging around wildly on the back of concerns over Tesla’s robotaxis (which are a potential risk). But over the last five years (which is generally the minimum recommended timeframe for investing in stocks), it has roughly doubled in price. And looking out over the next five years, I see the potential for further gains as the company expands into new markets. Should you invest £1,000 in Uber Technologies right now? When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Uber Technologies made the list?
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HSBC’s FX strategy team advises investors to buy the U.S. dollar against the Canadian dollar (USD/CAD) ahead of potential tariff-related volatility. With the March 4 deadline for U.S. tariffs on Canadian imports approaching, analysts foresee a significant market shift.

HSBC’s USD/CAD Outlook and Key Drivers

HSBC strategists highlight that the absence of a U.S. dollar premium relative to rate differentials creates a ripe environment for a sharp USD appreciation if trade tensions escalate.

While markets currently anticipate a smooth outcome, HSBC warns that the implementation of broad 25% tariffs on Canada could trigger a significant rally in USD/CAD.

“The Canadian dollar is particularly exposed,” explains HSBC strategist Daragh Maher. “USD/CAD has dropped below levels justified by rate differentials, meaning CAD is currently trading at a premium rather than the USD.”

U.S. Trade Policy and Canadian Dollar Weakness

President Donald Trump has authorized tariffs on imports from Canada, Mexico, and China, initially set for February 4, 2025. However, negotiations led to a 30-day delay, shifting the implementation deadline to March 4, 2025.

Since the postponement, CAD has edged higher, but HSBC’s FX strategists caution that volatility could spike again as the new deadline approaches. A further delay may cause mild USD weakness, yet HSBC sees a higher probability of USD strength should tariffs be enforced.

Economic Indicators to Watch

HSBC highlights several key economic data points that could influence CAD’s trajectory:

  • Canadian GDP figures (Feb. 28, 2025) – Market reaction will be crucial.
  • Labour market data (March 7, 2025) – Potential impact on Bank of Canada’s monetary policy.
  • BoC Rate Decision (March 12, 2025) – Markets currently assign a 42% probability to a 25-basis-point rate cut.

Broader Forex Market Impacts

Beyond Canada, HSBC identifies the euro (EUR) as another currency vulnerable to U.S. trade policies. However, optimism surrounding potential Ukraine peace talks could limit its downside. The British pound (GBP) also faces challenges from weak economic growth and potential fiscal tightening in the UK’s March budget.

HSBC’s USD/CAD Trading Strategy

The USD/CAD pair was last observed trading around 1.4228, aligning with HSBC’s recommended long position entry point. The bank targets 1.4040, emphasizing that lower global commodity prices and a dovish Bank of Canada stance could accelerate CAD depreciation.

Expert Forecasts and Market Trends

For traders seeking accurate USD/CAD and GBP/CAD forecasts for 2025, HSBC provides a comprehensive consensus outlook, including median, mean, highest, and lowest projections. Request your exclusive copy now.

 

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