Investment Q&A

Mr. R has been negative for a very long time. We would agree on the call that Treasuries look attractive. We do think rates and inflation are going to  peak, and we might even see some deflationary talk, depending on how the economy progresses. But we would be less bearish on stocks. Profit growth so far has been good, and lower yields of course should help the stock market as well. A lower US dollar can be very powerful for US companies with global exposure. Other than the Mega Seven stocks, valuations are still reasonable compared with historical averages. We would prefer a US ETF such as TLT for long term bonds, but XTLH would suffice (hedged) if one wanted a Canadian fund. XHY should do well if rates fall (corporates though, not treasuries). RUSB.U is an option if one wanted shorter term duration bonds (fees are fairly high, however). Note that if US rates fall, Canadian rates likely will as well. Currently, the Canadian economy is still weaker than the US. XBB we think would work for a Canadian ETF as well.