The Royal Bank of Canada, the Conference Board of Canada and the International Monetary Fund have all warned that a downturn is coming over the next year or so. No, a recession is not an absolute certainty, but it is such– 70 per cent, according to the Conference Board – that it should be the basis for any realistic investing plan.
Better yet, dividend stocks have historically beaten the market in Canada. If past is prologue, there is good reason to think they will continue to perform well over the long term. The real advantage of dividend investing during a downturn is that the steady dividend income gives you an excellent reason to hang on to your stocks rather than selling in a fit of panic. But steady dividends don’t protect you from falling share prices. If the market slides further in months to come, expect dividend stocks to share in the pain.in recent months. Many smart investors, though, see that as an opportunity to buy into the asset class on the cheap.
Bonds have other advantages, too. They are liquid – unlike a GIC, you can easily sell them before maturity. They also offer the potential for capital gains. Since bond prices move in the opposite direction of interest rates, any plunge in inflation and in interest rates over the next year or two has the potential to send their value soaring.The biggest concern for bond investors is what happens ifdoesn’t relent over the next couple of years.
2 year 4.9 gic.
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The best way? Vote out TRUDEAU and the Liberals.