Interest rates are near the historical 'norm': Gordon Reid - BNN Bloomberg

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After many North American central banks drove interest rates up in lockstep last year, one investment professional said interest rates are only now starting to normalize on a longer-term basis.

Reid said following the financial crisis of 2008, the U.S. government got involved with “sponsoring markets” and taking on the liabilities of corporations while expanding the Fed's balance sheet in era of easy monetary and fiscal policy.

Reid said he doesn’t think the Fed will lower interest rates this year, as it would only do so to ease the pressure on a potentially struggling economy. “So we're thankfully back more towards a normalized period after probably 10 or 12 years of very awkward markets I'd say for investors,” he said. “So at Goodreid where we have 95 per cent or more of our clients in a balanced mandate, meaning that we have some fixed income, some U.S. and Canadian equities, the fixed income portion is becoming meaningful again,” Reid said.

 

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