RE:RE:RE:RE:Bank of Canada Of course preferred are more advantagious if you know what you are doing and where. I gave GIC's as the least risky and for people who want to wait this out, that is where they are going to park it. Many funds as many have stated are holding more cash now than they have done since the last recession some as high as 60% and they have become traders also in many cases selling into any rally for now and causing some of the volatility.
Knowing how the west runs its business and how squeemish they are about the stock market, Saudis, Russia and others are going to continue to play havoc with the oil supply until they can. The USA are learning that lesson now having given the Saudis a BYE for so many years, selling them arms just to be stabbed in the back. This winter may be way more brutal than anyone may think. They'll be hoping for a warm winter and f climate change .
flamingogold wrote: GICs are fully taxable like rental income. I won't be parking any free cash there. Preferreds offer a higher return and are tax advantaged too.
clubhouse19 wrote: It.s all up in the air right now. Everything is not priced in as they only expected most likely a .50 in Canada. A recession is expected next year here while in Europe it is already there to a certain extent.
These bear market rallies are to be expected some more pronounced than others.
As interest rates rise, many more will be parking their cash into fixed income such as GIC's where they are guaranteed a return of up to 4 to 4.5 % for 1 year.
flamingogold wrote: Equity markets have the next rate increase mostly priced in. What's not priced in is in real estate. Buyers have dried up and the sellers are unwilling to drop their ask. The canyon is widening as buyer FOMO turns into JOMO... the Joy of Missing Out on real estate prices falling another 30% at least from here.
clubhouse19 wrote: Expected to raise interest rates by .75
Hotter inflation than expected.
Not good for stocks overall.
Not a good time to be on margin for sure.