Three strategies for coping with low interest rates in longer business cycles

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 50 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 92%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Three strategies for coping with low interest rates in longer business cycles GlobeInvestor

We are in a discouraging environment for income-focused investors: interest rates continue to be very low, while the stock market is vulnerable thanks to a long-in-the-tooth economic cycle.

We will not be rid of the knock-on effects of the 2008 financial crisis until global governments’ balance sheets are back in order and the ongoing financial repression lets up. These debts have arisen from a combination of quantitative easing and fiscal stimulus, and are typical of a financial crisis. However, we are still living under the shadow of 2008, even after a 10-year bull market. This is unusual.

When it comes to your stock portfolio, the low-rate environment favours dividend-paying and global stocks. Canada has some terrific companies to invest in — particularly banks and utilities — but what about technology, industrials, consumer stables, autos and drug companies? It’s critical to invest in safe and growing global stocks for sector diversification. We recommend a Canadian-centric approach, with 33 per cent Canadian and 67 per cent global.

2. Overweight good-quality and short-maturity corporate bonds, or better yet, Commercial First Mortgages.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

New cheap ETFs that cover the Canadian market and how negative interest rates offer opportunity in bank stocks: What you need to know in investing this week(Subscribers) New cheap ETFs that cover the Canadian market and how negative interest rates offer opportunity in bank stocks: What you need to know in investing this week
Source: globeandmail - 🏆 5. / 92 Read more »