TSX:BPO.PR.A - Post by User
Comment by
pierrelebelon Oct 27, 2023 5:39pm
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Post# 35705094
RE:2 difference between the N's and the T's
RE:2 difference between the N's and the T's
"For me, LONG TERM, the reset date doesn't matter..."
True but I like to define long term as 5 years, not eternity.
My wife is 75 and I am 78. We plan our investments accordingly. We do not expect to live forever nor be able to manage out investments in the far future.
We know the probabilities are that "Canada 5 year" will trade around 4% in five weeks.
I simply cannot see that high rate two and half years from now and would not assume it in my projections. Why? Because Canada's economy (and real estate, mortgages, etc...) cannot afford these high rates for long. The economy will slow down and effective rates will come down. That is why I am reluctant in assuming 4% or 5% rate in future years.
I know what I know now and... oh well.... I am too old to guess what the rates will be in future years.