Q: Inflation is low and BOC rates are still at very low rates - money is cheap to get. IMHO the only place to make money is in the stock market, but seniors want low risk and for many decades placed money in high yielding low risk investments - GICs. Recently I applied for and received a 5 year closed mortgage at 2.49%, which means rates will stay low for at least five years. Our population is aging and that segment of investors like low risk, which leads to lower returns.
My question, when do you think or believe interest rates will rise to a new normal and therefore the stock market will see a competition for money from seniors? Therefore, by default lower returns in the stock market.
As always thanks for your comments.
Clayton
My question, when do you think or believe interest rates will rise to a new normal and therefore the stock market will see a competition for money from seniors? Therefore, by default lower returns in the stock market.
As always thanks for your comments.
Clayton