Features
The Dark Side of Albert: Einstein and Mileva Marić, his First Wife
By DAVID TOPPER Albert Einstein was the most photographed scientist of the 20th century. The scope of emotions depicted range from the serious to the silly: from looking like a secular saint with hands folded and deep in contemplation of supposedly solemn thoughts, to the image hanging in front of me on the bulletin board over my computer table, showing him sticking out his tongue at the cameraman. Living during the heyday of the development of the film camera, he and the press surely took advantage of it. The positive persona of the genius was formed out of these visual images. This visual disposition was supplemented with endless quotations on not only science and the universe, but also with homilies on life and how to live it, with much of that which you will find quoted, being things he never said. Overall, the general image of him and his personality has him coming out seemingly squeaky-clean.
Nonetheless, those of us who have looked into the man in more detail are aware of episodes of less than saintly behavior by Albert – the famous scientific idol. If, for example, you read any of the half-dozen or so lengthy biographies about him, you will find scattered therein stories of him speaking inappropriately or behaving, one might say, as a jerk. Having read all those books, and others – and even written three books on him myself – I knew this. So when I started reading a recent long biography of his first wife, Mileva Marić, I had no reason to think I’d be shocked, since I had already read a lot about her, including a book of letters to and from her best friend, which also contained a brief biography. But to my surprise, I was staggered in reading over 400 pages of his nasty behavior concentrated around this one woman – a woman whom he fell in love with as a university student, and who was the only mother of his children.
Here is the sad – and probably surprising to most readers – story of Mileva and Albert.
Mileva Marić was born on December 19, 1875, into a Christian Orthodox Serbian family. With a dislocated left hip, she walked with a limp throughout her life. (Her sister, Zorka, had the same congenital condition.) Forced to wear an orthopedic shoe, she was teased and mocked in school. Nonetheless, this very bright girl filled her lonely childhood with her studies (she was especially good at math) and piano lessons. Encouraged by a very loving father, she excelled in school, and was the first girl to attend high school physics courses in the Austro-Hungarian Empire. After graduating in 1896, she applied to the prestigious Zurich Polytechnic, since in Switzerland women were admitted to all classes. She passed the entrance exam and majored in mathematics. It was a small freshman class of about two-dozen students, she being the only woman. That’s where she met, in the even smaller physics course, fellow student, Albert Einstein.
One of the earliest pictures we have of Mileva is dated 1897. In this portrait, I see a very serious, confident, determined woman with large penetrating eyes, a full crop of dark wavy hair and full lips. I would call her plain but attractive. I say this, because I was shocked at several instances when someone, upon first meeting Mileva, is quoted as describing her as “ugly.”
As a fellow student, Albert Einstein was attracted to her, and they quickly became a couple. He probably was the first male to take a romantic interest in her, overlooking her “handicap.” I suspect he was attracted to her gutsy attitude and her smartness. Plus, being Serbian, Mileva exuded an exotic “otherness” to the “German” in Albert. They spent most of their free time together, studying and falling in love. She did well in her courses, initially passing all of them, as Albert did too (of course). That is, until she was pregnant – a fact she tried to hide until she could not. And so she went home to her parents to inform them of this, and eventfully to have the baby.
Her parents were very supportive, which was unusual for the times. A girl was born early in 1902; they named her Lieserl (probably a Yiddish diminutive of Liese, a shortened Elizabeth). Albert stayed in Zurich and never saw his daughter; she was raised by Mileva’s parents, as Mileva returned to Zurich to continue her studies. No one knows what ultimately happened to Lieserl; she has seemingly vanished from all records. She may have died from Scarlet Fever as a child; or, she may have been adopted and grew up. One thing I do know: Mileva never forgot her. I believe that the loss of Lieserl is the major reason for Mileva’s depression and lingering melancholia throughout her life – as will be seen. As a result, she didn’t take care of her grooming and was a bit overweight – as seen in photos of her later in life. This, I suspect, may be a source of her “ugliness.”
Back to Zurich in the late 1890s and her studies: she passed all her courses over the first three years, and in her fourth year she started her thesis, hoping for a diploma and further work toward a PhD. But in 1900 she failed her final exams, while the other male students all passed. In July 1901 she repeated her final exams and flunked them again. I find it hard to believe that this sudden change in her performance was due to the tests being too tough for this woman, in light of all we know of her up to this time. Look at the last date above: she was pregnant with her child. I’m convinced that she just couldn’t concentrate on her studies. Albert passed, graduated, and started looking for a job – as well as working toward his PhD.

On January 6, 1903, they were married in a small civil ceremony. Mileva became a housewife; no more thinking of going any further in her studies. She then became the mother of two boys: Hans Albert (born in 1904) and Eduard (nicknamed Tete; in 1910).
All that promise came to nothing, not even a university degree. If she had not met Albert, who knows what she would have achieved? But that was not the path taken, and since she married what became the most famous scientist of the 20th century – if not the most famous person, as Time Magazine said at the end of the millennium – that’s why there is a plethora of documentation about her life, terribly sad as it was.
Now briefly fast forward a century or so, to around 1987, and the publication of the early love letters between Albert and Mileva, which had only been known by a few, and purposely suppressed. For example, Hans Albert, who had the letters much earlier, had wanted to publish them. But he was thwarted by Helen Dukas and Otto Nathan, who threatened litigation. Dukas was Albert’s lifelong secretary and Nathan was an economist and close friend, who eventually was the executor of Einstein’s will. And so, the letters never surfaced until Dukas and Nathan were both dead.
Even today, writing about these letters is an ideological minefield. Here’s why. The letters date from 1899 to 1903, when a new theory of physics was brewing in Albert’s mind. The result, in the so-called miracle year of 1905, was the publication of five papers that changed physics forever: two on what became his Theory of Relativity; one on a particle theory (much later called a photon) of light, as part of the emerging Quantum Theory; and two supporting the reality of atoms, which were still only hypothetical entities at this time. Knowing this, how much can we read into the love letters when Albert, in talking about his scientific ideas, uses “we” and “our work”? Well, it seems, a lot; for the initial response from primarily feminist quarters was that Mileva should at least be seen as a co-author of the famous papers, since it seemed that they conceived of the theory together. Given, as we will see, Albert’s shabby treatment of her later in life, then all the more sympathy was directed toward Mileva and her plight by history. Indeed, some went so far (you will still find websites saying this) that Albert stole the theory of relativity from Mileva. Nonetheless, after that initial flurry of debate, the consensus has moved away from this viewpoint, so that today the select scholars looking over the Einstein Papers Project in Pasadena, California assert unabashedly that Mileva made no input to Albert’s theory.
Nonetheless, I am one of the few “Einstein scholars” (if I may call myself such), who gives Mileva some credit in the 1905 marvel. She was good at mathematics, she had patience in her life and work, and she was a thorough researcher – all qualities severely lacking in Albert. Let me put it this way: over his life as a physicist, Einstein hired a series of companions (whom he called “calculators”) to do the tedious and complicated mathematics required for his theory, especially as it developed over the later years with the use of tensor calculus in his General Theory of Relativity. All were men; except, famously, his last calculator was the Israeli-American woman, Buria Kaufmann – about whom you will read in the literature as his “first female calculator.” (Incidentally, there is a website giving her credit for Einstein’s later theory, which is complete fiction.) I, however, would assert that Buria was the second woman; for Mileva was Albert’s first “calculator.” She was also his researcher and proofreader. Since she knew the physics, as we know from the letters, she also was his sounding-board – Albert bouncing ideas off of Mileva, as they say.
So, what about Albert speaking of “we” and “our work”? Let me put this into context by quoting from some of the letters in chronological order. In a letter Mileva wrote to Helene Savić (née Kaufler), her closest and longest friend throughout her life (they roomed together in a boarding house in Zurich when they were students), she speaks of a paper “written” by Albert that will be published soon that is “very significant.” She then says that “we” sent it to an important physicist – revealing how much she was involved with Albert’s work. Later in a letter from Albert to Mileva, let me quote from the opening lines to give you a trace of their intimacy: “Thank you very much for your little letter and all the true love that’s in it. I kiss and hug you for it from all my heart, exactly the way you would want it & are entitled to, love.” He then goes into a discussion of other people, followed by his going back to how much they love each other, and ending with this key sentence. “How happy and proud I will be when the two of us together will have brought our work on the relative motion to a victorious conclusion.” I put in italics the famous (or is it infamous?) phrase: our work. But there’s nothing more on this, although a bit later in the letter he goes on to talk about another physics problem he is working on: specific heats. He discusses the physics problem in detail, with equations and his proposed solution, and he ends the topic with this: “Don’t forget to look up to what extent glass obeys the law of Dulong and Petit.” My guess is that it was this sort of task that was part of their work together. The letter ends where it began. “Tender greetings and kisses, my dear little dumpling, from your … Albert.”
I’ll leave the topic there, nonetheless aware of the possibility that Mileva did help Albert in even more significant ways, and that hence she’s been slighted by history.
Back to Zurich in 1903. Initially, their life together was harmonious, a reflection of the camaraderie in the love letters, as she kept house and raised her boys. But by around 1909, when Albert was being seen as an important physicist, there clearly was a severe strain on the marriage. For example, in a letter that year to Helene, she says that Albert “lives only for his work” and the family is “unimportant to him.” By 1914, when they moved to Berlin for Albert’s prestigious position at the Kaiser Wilhelm Institute of Physics, their marriage entered a new phase. In fact, Albert had been having relations with a divorced cousin, Elsa Löwenthal, who lived in Berlin. Moreover, Albert made it clear to Mileva that their previous relationship was over. He went so far as to give her a list of demands: that she do the laundry, prepare him three meals a day, and keep his office clean – all without any personal relations. No intimacy in the house, and no being together in public. It was degradingly cruel: Mileva’s role was reduced to being a maid and cook. She tried to accept it, but quickly found that she couldn’t endure the humiliation; and so she took her two boys back to Zurich, where she remained for the rest of her life.
They officially divorced in 1919, and Albert immediately married Elsa – all in the same year that he became the world-famous scientist, because of the solar eclipse experiment that proved that light from a star is bent around the sun, as predicted by his theory. He got the Nobel Prize for Physics in 1921 and transferred the money to a bank in Zurich for the support of their boys, where Mileva had access to the interest in the account.
What happened after all that infatuation seen in the love letters and in their early life together? In retrospect, Mileva surely realized that she had ignored or overlooked what we might call the dark side of Albert. As a student he was overly sarcastic, often mocking and even degrading people whom he saw as inadequate or not too smart. He even teased her in ways that revealed an underlying hostility. When she pointed this out, he would laugh it off – and she’d forgive him. In a letter to Helena in 1900 she writes of Albert’s “wicked words with deeds! What an insolent boy he is, and yet I love him so much!” Telling words. Even after the acrimonious divorce, she still, as will be seen, was under Albert’s spell. I believe that she never got over that initial infatuation when they were students. It became a pattern: she was always trying to get on his good side.
Overall, Albert was very much a 19th century male chauvinist in his attitude and communications with women. Here are some of his words about women that reveal his overt misogyny: they are “passive, insecure, needy, and wanting to be dominated.” I knew that he liked to flirt with women throughout his life. But seeing him do so with other wives, with Mileva present, made it less frivolous and more malicious. In short, he was a cad and a rake, rolled into one.
The turnaround in their relationship seemed to bring out the worst in him. He was petty and vindictive, and especially very cruel towards her. There is no direct evidence of any real physical abuse. However, there was an incident in the spring of 1913 when a friend reported seeing Mileva with a badly swollen face, which was attributed to a “toothache” – and hence she and Albert missed some social events. Possibly the swollen face was a sign of something more malevolent, but we will never know the truth. Nonetheless, pondering this, I wish to quote something Albert wrote in a letter in 1925: “Not only children need a bit of thrashing, but also grownups and especially women.” And I’ll leave it there.
After the divorce, he accused her of poisoning his relationship with the boys – a common trope between divorcing couples. But it got more vicious as her financial situation became grave, and she asked for more money. She made some extra money tutoring students in math and giving piano lessons. But it wasn’t enough. Albert’s letters to her contain nasty personal attacks: saying she is “abnormal,” a “nonentity,” and that her pleading is “rubbish.” I can only imagine how Mileva felt being called this. At the time, she was in severe physical pain with chronic back problems, often forcing her into bed for long periods, even stays in hospital, when she was trying to raise two boys alone. Moreover, all this was exacerbated by problems in her Serbian family. Her sister Zorka was diagnosed as schizophrenic and was in and out of asylums; her only living brother disappeared into Russia after World War I; and her parents had serious financial problems.
Could it get any worse? It could. And it did. Tete became a handful. He was very bright and creative; he had musical talent on the piano, and he wrote promising poems and stories. But he was also prone to falling into depressive episodes, for apparently no reason – anger fits, throwing things, being out of control. I suppose Mileva saw this coming: Tete, like her sister, eventually was diagnosed as schizophrenic.
Albert, of course, knew all this, but being in Berlin, he didn’t have to deal with it. He did make occasional visits and took summer trips with the boys (giving Mileva short breaks), all while he was still living in Europe. But when he moved to Princeton, N.J., in 1933, with Hitler in power in Germany and Einstein’s name being high on a hit list, their meetings were over; until 1938, when Hans Albert (now with a wife and two children) moved to the USA. The last meeting between Albert and Tete is recorded in a 1933 photograph that bears a close look. Both are seated in a room, with Tete looking over a large, open portfolio – perhaps reading it. Albert is facing in a different direction (about 90-degrees away), holding a violin and bow, and staring off into space. It may be that Tete is reading to him, but more likely they are inhabiting two different worlds.
In the years during World War II, living in Zurich, Switzerland (a country surrounded by a Nazi-occupied Europe), Mileva was terrified that the Nazis would swoop up this last free space. Moreover, she knew that they were rounding up Jews by the trainloads and moving them to Concentration Camps. She was somewhat safe as an Orthodox Christian, but Tete was “Jewish,” being a child of Einstein. She wrote pleading letters to Albert, asking him to take Tete to the USA. She even contacted the Red Cross, and they agreed that the best bet was to get Albert to sponsor him. “Bring us to safety,” she wrote. But being Mileva – ever still the dutiful wife, even though they had been divorced for two decades – she added (and I assert that she was not being sarcastic in saying this), “[I am] not intending to disturb your peace and freedom.” Petrified that “Tete is in danger because he is your son,” she concluded: “you can’t just leave him in the lurch.”
In fact, Einstein, Dukas, and Nathan were diligently rescuing Jews from Europe by using Einstein’s name to get emigration papers and such. Albert once spoke of this, saying that they were running a little refugee office over his cluttered “lawyer’s desk.” And they did save lives. Relevant here is a 1939 letter from Albert to Helena on this very topic. Helena’s father was Jewish, and she had numerous relatives whose lives were in peril, and so apparently, she was asking Albert for help. He wrote in response. “How gladly would I help! But I am desperately trying to at least get younger people out. Relocation of old people must under present horrible conditions be set aside.” In the end, we know of two aunts of Helena who died in gas chambers. Interestingly, in this same letter, Albert mentions that Hans is now in America, but that Tete is with Mileva in Zurich, saying that Tete is “incurably mentally ill.”
So, what about Tete? And Mileva’s pleading letters? As far as we know, these pleading requests were never answered. Albert, it seems, did leave his son “in the lurch.” My guess is that he just couldn’t fathom the chaos in his life of dealing with someone with such a severe mental illness. Listen to what he later wrote to Hans about Tete after learning of Mileva’s death. “If I had been fully informed [apparently referring here to what he saw as a genetic mental illness in Mileva’s family], he [Tete] would never have come into the world.” I can only imagine how Hans must have felt after reading these appalling words from his father about his beloved brother. Sometimes Albert’s behavior is plainly pathetic. Fortunately, the Nazis never invaded Switzerland.
Much of Mileva’s adult life was centred on Tete, as she watched him descend into the depths of mental illness. Overweight and chain-smoking, he was in and out of mental institutions. For Mileva, he was a full-time job. She, being the caring mother, was obsessed with making sure he would be safe after she died. And she succeeded; for seven years after his mother died, he lived in the renowned Burghölzli psychiatric clinic in Zurich. He was 55 when he died.
I believe Mileva never got over two things: the loss of Lieserl and her infatuation with Albert. We don’t know what happened to Lieserl; but Mileva surely did, and it haunted her all of her life; as seen, she flunked her final chance for a university degree because of it. Lieserl was a source of her constant despondent behaviour and possibly her so-called “ugliness.” In a letter to Helena in 1925 she wrote of “my unfulfilled desire for a daughter”– another telling phrase, since she had a daughter, but was forced to abandon her.
Regarding Albert, no matter how abusive he was, Mileva still was open to forgiveness. She once asked herself this question: “When has a man ever listened to reason, when a woman is involved?” She should have listened to her own words.
Mileva Marić died on August 4, 1948, at the age of 72.
This story of Albert falling in and out of love with Mileva was not the first such episode in his life. It was previewed by and even overlapped with his first sweetheart: Marie Winteler.
In 1895 he spent a year enrolled in the cantonal school in the town of Aarau, near Zurich. He had taken the rigorous entrance exams for the Polytechnic (which Mileva later passed) and had flunked the non-science and non-math parts. But since he did so well on the science and math parts, it was recommended that he do a year of make-up in Aarau; plus, he was applying at age 16, a year early. He boarded with the family of Jost Winteler, a teacher at the school. Jost and Pauline had three daughters, the prettiest being Marie, two years older than Albert. Albert quickly fell for her, and she for him. She was an accomplished pianist, and so their love interests were supplemented with piano and violin duets. After that year, and after passing the entrance requirement at the Polytechnic, Albert moved to Zurich – where he met Mileva, and then broke off with Marie. In short, he jilted her, as he would later do with Mileva.
Marie, however, thought the relationship was to be forever, and wrote pleading letters when he stopped writing to her. After all, he was still mailing her his dirty laundry to wash and send back. (I am not making this up.) Being deeply hurt, she fell into a depression that (may have) plagued her throughout her life. She became a schoolteacher (whose records show that she missed a lot of classes due to sickness); in 1911 she married a man whose first name was Albert. They had two boys, but divorced in 1927. We also know that she tried to reach the first Albert in the 1940s about emigrating to the USA, but there is no record of his having received her letters. (Albert’s secretary was known to censor his mail.) She died in a mental institution in 1957, two years after Einstein died.
I mention this for two reasons. One, the obvious – this being a preview to the story of Albert’s shabby treatment of Mileva and the parallel terrible consequences. The other reason is the dirty laundry. This, also obviously, needs to be explained.
In 2019 I published an historical novel on Einstein’s life, called A Solitary Smile. In it, Marie is one of the characters, especially near the end and in a dream sequence that has Einstein recalling their time together, where he realizes how he hurt her. In recalling this part of my book, while writing this story of Mileva, and now Marie again – I suddenly realized that I didn’t include the dirty laundry bit. Why? I knew it then, as I do now. So why not mention it? Ruminating on this, I can only surmise that I was subconsciously protecting Albert from more scorn. Why dig up all the dirt (seemingly, literally in this case). How interesting this is. Me, being part of the problem. Protecting Albert’s image.
Well, I caught myself. And here I acknowledge my error – to supplement my saga on the dark side of Albert Einstein.
* * *
Readings: Mileva Marić Einstein: Life with Albert Einstein, by Radmila Milentijević (United World Press, 2010). In Albert’s Shadow: The Life and Letters of Mileva Marić: Einstein’s First Wife, edited by Milan Popović (The Johns Hopkins University Press, 2003). A Solitary Smile: A Novel on Einstein, by David R. Topper (Bee Line Press, 2019).
Features
Exchange Rate Factors: What Global Events Mean for Savvy Investors
When Russia invaded Ukraine in 2022, it created ripples in all financial markets, including currency markets. The Euro weakened while the dollar surged and emerging market currencies wobbled. Global factors can quickly affect financial markets and shake established trends. Apart from such rare events, currencies tend to change their price because of interest rates, inflation, and overall investor confidence. For investors managing money abroad, understanding these movements is critical to avoid losses and mitigate risks.
Below, we will break down how global political, economic, and cultural events influence exchange rates, with insights for savvy investors.
Economic factors
There are several key exchange rate factors with a consistent history of shaking financial markets. These factors include inflation, interest rates, trade balances, employment rates, and so on. Since economic factors are shaping markets almost daily, we start with those.
Inflation and interest rates
Inflation and interest rates are closely connected as one can easily affect the other. When inflation rises, central banks step in and raise interest rates to reduce inflation, and when inflation is lower, central banks can lower interest rates to make borrowing money cheaper. As a result, investors closely monitor these two metrics to anticipate changes in interest rates. Higher inflation makes currencies weaker, and whenever banks change the rates, the changes are immediately reflected in global currency rates. In the United States, the Federal Reserve is the central bank that sets interest rates in the country.
Trade balances and economic growth
A country that exports more than it imports has a stronger demand for its currency. More demand equals a stronger currency. However, the Japanese yen was always weaker against the dollar because the BOJ of Japan tends to have super low rates near 0 to support its exporters. Economic growth also increases demand for local currency as more investors try to invest in the country’s economy. Long-term investors often track this data to detect early signs of any changes in currency strength.
Political and geopolitical factors
Elections, sanctions, and overall political stability are also crucial factors. If the country gets under sanctions, its economy crumbles and its currency becomes inflationary, losing its value quickly. Elections are also crucial for a currency’s strength. Geopolitical events can have a serious impact on the currency as well. The most obvious example is the 2016 Brexit events that made GBP lose its value rapidly and violently. Global conflicts, such as wars, can seriously impact global financial assets, especially currency markets. When tensions are high, safe-haven currencies like USD and CHF (Swiss Franc) become very popular among investors as they seek a safe place to protect their capital.
Cultural and social factors
People like tourists, workers, and diaspora communities can shape currencies as well. Tourism usually drives seasonal demand, and countries that are popular destinations during certain seasons experience their currency appreciation as demand spikes. The perception matters as countries seen as safe and opportunity-rich tend to attract more investors, solidifying their currency strength.
Technology and innovation
Technology is seriously affecting everything, especially the financial sector. Digital payment systems, blockchain technology, and fintech startups have made it easy and swift to move money around. Cryptos and stablecoins enable investors to protect their capital using stablecoins during volatile times. The latest trend among banks is to work on CBDCs, which signals a new era where national currencies are blended with technology and blockchain. Despite this, currencies, even in their crypto form, will continue to be influenced by all major factors mentioned above, and knowing how these factors impact your currency is key to keeping your capital safe from risks.
Practical lessons for savvy investors
So, what do all these factors teach us about global currency rates and investing strategies? The key lies in proper preparations and anticipation. Monitoring macro trends, policy announcements, and major geopolitical and political developments is critical.
Diversify
The number one method which is used by professional investors is diversification. This simply means to spread your risks across a basket of assets. By not investing all your capital in one instrument, you can mitigate risks. If one asset experiences a loss, other ones will counter it with returns. Building a diversified portfolio is key to properly diversifying. For example: divide your capital to buy stocks, commodities, currencies, and cryptos so that if one fails to perform, others will counter it. This ensures a stable income without unnecessary losses in the long run.
Hedge
Forex options and ETFs are great hedging assets. Forex options let investors lock in an exchange rate for a future date, which is very useful if you expect volatility but want stability. Currency ETFs, on the other hand, track specific currencies or a basket of currencies and allow easy trading or protection without trading forex directly, but they are still risky.
Monitor the economic calendar
Economic calendar is a free online tool that aggregates important macroeconomic news data such as interest rate decisions, CPI, inflation, employment rates, central bank announcements and speeches, and other crucial information. By monitoring them, investors can always know when important news data will be released, and they can postpone their investment decisions to avoid volatile times and only invest after the main trend is determined.
Features
The Canadian Dollar is on a slow decline. Should you save in euros or US dollars instead?
The Canadian dollar has been losing its value against the dollar this year. For Canadians, this raises a simple question: if your CAD is losing ground, is it better to move savings into euros or U.S. dollars, especially bonds, stocks, or a carry-trade strategy? Carry-trade strategy in this context means to borrow in CAD and invest it in the USA or the EU zone. This is a complex matter, and to understand where the CAD is, how attractive other currencies might be, we need to analyze these currencies more deeply. Below, we will walk you through the data, practical costs, and risks so you can reach a usable conclusion after reading this guide.
Quick snapshot – What the markets say right now
Recently, the Canadian dollar has hit multi-month lows due to weaker oil prices and a post-Fed (U.S. Federal Reserve) market reaction (which raised the rates, making the CAD weaker against the dollar). Canada’s central bank has cut its policy rate to 2.25%, while the Fed’s fund rate remains notably higher at about 3.75-4%. The ECB (European Central Bank) main interest rates are lower than the Fed’s and near the low-to-mid 2% range. While the Euro currency to USD rates remain mostly predictable, due to higher US bond yield rates, the EUR remains stronger, still. The U.S. 10-year Treasuries are around 4.1%, Canada’s 10-year near 3.2%, and Germany’s 10-year around 2.7%, meaning that today the USD-denominated bonds have the highest nominal yield among the three. As a result, the dollar seems much more attractive when it comes to bond yields and stocks.
Bonds – Which currency is the best for fixed income?
The short answer is: USD bonds. When it comes to nominal yield alone, US bonds beat almost all other competitors. U.S. government bond yields (10-year) are noticeably higher than Canadian and German/Eurozone bond yields right now. As a result, US bond buyers have more income potential than Canada and the EU. Euro-area core yields are lower, meaning they are paying less than the USA.
However, nominal yield does not mean it is guaranteed real return, and metrics like inflation, currency rates, and hedging costs can impact potential returns directly. If you buy USD bonds but the dollar falls against the CAD, currency losses will most likely wipe out the higher yield rate. If the Fed lowers its rates, it will make the dollar weaker against the CAD and EUR.
Another challenge is that, if you live and spend in Canada, you are using CAD, and when exchanging it for dollars, you get exposed to foreign currency rate risks, which must not be underestimated.
Stocks – Euro or dollar?
Both the EUR and USD have their advantages. USD has strong liquidity and strong long-term performance, while EUR equities offer valuation opportunities and recent relative strength.
Why USD?
The U.S. market remains the most liquid stock market with strong earnings for many tech and large companies. This makes USD stocks very attractive for long-term-oriented investors. S&P has been rising historically, and even after crashes, it often recovers its value relatively quickly.
Why EUR?
European indexes have performed well this year and in many cases cost less than their U.S. counterparts. While cheaper does not always mean better, these indexes still have some growth potential. Some major banks in the EU zone, together with industries, have recovered strongly with a recent focus on military manufacturing, making many EU stocks very attractive, together with local indexes.
However, here is a caveat: if you are using CAD daily and it loses its value against the euro, the returns from euro holdings might shrink, exposing you to greater currency risks.
Carry-trade analysis – Is it viable to borrow CAD and invest it in USD or EUR?
The basic promise of carry-trade is simple yet powerful: you borrow cheaper currency and invest it in currencies with higher yields. In our case, is it lucrative to borrow in CAD and invest in either EUR or USD? To answer this question, we need to look at numbers. BoC policy rate is 2.25%, Fed funds from 3.75%, U.S 10-yr is 4.1%, Canada 10-yr is 3.2%. If we deduct Canadian rates from the U.S. rates, we get around 1.8% positive before costs. So, in theory, it could be lucrative to invest CAD in USD assets using a carry trade. Since the ECB has around 2%, it is not profitable to use a carry-trade strategy for the euro.
The bottom line
While the CAD has been weakening lately, it is still not cheap enough to naively invest in USD or EUR. However, if you want a pure yield and can tolerate foreign exchange rate risks, USD bonds are more attractive today. When it comes to stocks, USD equities provide stable and liquid markets. If you want valuation potential and diversification, then euro equities have become more attractive this year. When it comes to carry-trade strategies, the USD remains more lucrative than the euro, but on paper, traders and investors should evaluate all the risks and costs before investing in any currency.
In the end, Canadians who have CAD for their daily costs should be careful when trying to get exposure to other markets. US bonds, US stocks, US carry-trade, and EU stocks remain attractive choices for experienced investors.
Features
Why Reading Online Reviews Matters Before Making a Purchase
People usually pause before purchasing to read reviews from other customers. It’s become part of everyday online life, a quick way to see how something really performs before making a decision. According to the Pew Research Center, most internet users read reviews to get a better idea of what they’re buying. The feedback from actual users becomes more reliable than marketing statements because it comes from everyday consumers instead of sales-oriented corporate messages.
Reading reviews also helps spot patterns. If the same comment, good or bad, appears again and again, it usually means there’s truth to it. People now use this collective feedback as their main method to evaluate online products and services for quality and reliability.
When There Are Too Many Options, Reviews Narrow the Field
Shopping online can be overwhelming and a bit of an adventure. There are always more options than anyone needs, hundreds of gadgets, countless household tools, endless entertainment subscriptions. All listings present themselves as excellent value propositions with operational excellence, yet it remains a bit of a challenge when it comes to verifying which ones deliver actual results.
Reviews become useful at this point. Real users provide information about product details, which marketing content fails to show, by sharing their experiences about delivery speed and setup ease and product durability after several months of use. The product details show its operational behavior when used in regular business activities.
Users tend to begin with reviews. For instance, a tech product might have amazing packaging but fall short on battery life or integration. Maybe a new game or casino platform might sound promising, and reviews on trusted choices can confirm whether it includes flexible payment options, a wide content library, and responsive support. When feedback keeps mentioning strong points like clear instructions or helpful customer service, it shows consistency. The product or service delivers its expected results because customers have personally seen its performance.
Reviews Build Faith Through Shared Experience
Reviews gain their strength from the emotional bonds which readers find with each other. Reading about someone else’s experience feels familiar, even if you don’t know them. It’s basic word-of-mouth marketing, like receiving recommendations from a neighbor who has already purchased the item you are considering.
This shared experience has built an informal community of online voices. People rely less on what a brand claims and more on what other users notice. When different reviewers mention similar strengths or small frustrations, it adds authenticity. The story becomes more believable.
Reviews show what other users have experienced, but they do not offer any guidance about what to do. This type of his collective info turns into an important part of how people build trust online. It’s a small thing, but it makes a big difference in how confident we feel about the choices we make.
Balanced Feedback Feels More Honest
A perfect score does not prove that something lacks any imperfections. A combination of positive and less-than-perfect feedback creates a more authentic impression. Small complaints about packaging or delivery delays make glowing reviews sound real. A recent study showed that participants answered honestly instead of trying to make their responses attractive to others.
Most readers know that nothing works flawlessly all the time. People look for reviews which provide both positive and negative aspects because they want to find balanced opinions. Customers can establish realistic purchase expectations through combined information which they can apply before buying. Review systems maintain their value because reviewers maintain honesty in their assessments.
Why Recency and Volume Matter
The best reviews and product ratings are the ones written recently. They reflect how a product or service performs right now, not how it worked a year ago. Things change, materials, delivery services, and even the way companies handle support.
A steady flow of new reviews suggests consistency. When lots of people share their experiences over time, patterns appear. Those patterns tell readers what’s typical, not just what’s possible. It’s the difference between one person’s lucky experience and a reliable average that others can count on.
Quantity matters too. Ten balanced reviews from this month will usually tell more than a single five-star comment from last summer. Together, recency and volume create a clear picture of reliability and quality without relying on assumptions.
Recognising Genuine Reviews
Not every review online is authentic, real, and written by a consumer. Some are written by automated accounts or people hired to post positive comments. Real feedback tends to sound natural and personal. It might mention something specific like the texture of a fabric, how easy the setup was, or whether support staff replied quickly.
Authentic reviews vary in tone and detail. Some are short, others long, some are full of small observations. That mix of styles feels human. On the other hand, copied or fake reviews usually repeat the same phrases or sound overly polished.
Many websites now try to identify and label suspicious posts, but readers can also help by paying attention to repetition, timing, and tone. A quick scan across different platforms usually reveals what’s genuine and what’s not.
Reading Smarter in the Online Marketplace
Reviews have become a solid foundation for how people make decisions online. They give an honest view of how something performs beyond what’s written on the label. Every comment, short or long, adds another piece to the puzzle.
More than that, reviews show how businesses handle problems, how quickly they respond, and whether they follow through on promises. They offer accountability in a world where shoppers and sellers rarely meet face to face.
Reading a handful of reviews won’t guarantee a perfect experience, but it provides helpful context. It shows what’s typical and helps people make choices with more confidence. In an online world full of noise, reviews remain one of the easiest and most reliable ways to learn from others.
