This is a BIG picture question. I don't see any questions so far on 5i.
First Japan apparently makes an about turn in their interest rates? The articles that I read went above my head! And now Fitch downgrades the US credit rating. Again too much for me to understand.
What does it all mean to ordinary people like me? Many of my friends who are all seniors mostly say, cash is King!
I know you like to be fully invested.
Any words of wisdom?
Many thanks in advance.
Mano.
Japan has had low, or negative, interest rates for years, and very slow economic growth. It has been in an economic and demographic spiral. Now, its economy and stock market are improving, but at a slow rate. The Central Bank remains accomodative to try and encourage more growth. Japanese stocks are cheap, but the country's economic moves should have little impact on Canadian investors. Fitch has lowered the US's credit rating, but a bigger rating agency, S&P, did this as well ten years ago. It may make debt servicing more expensive, but we do not think it will really have much of a true economic impact. The US dollar remains the 'go to' currency for world investors. With GIC rates at 5%+, many investors are opting for the safety of 'cash'. But corporations continue to do well, and we have no reason to be additionally worried about the market (other than the typical known and unknown risks which are always present).