Bonds are brutal and stocks are sinking - does a 10-year GIC sound good right about now?

A generational opportunity for safe investing in GICs has opened up this year, but don’t get carried away.

Returns for shorter-term GICs and bonds are higher today than for the long term, which is known in financial circles as an inverted yield curve. You see this phenomenon when financial markets see high rates and inflation as a near-term issue and believe rates in the longer term will be lower. EQ’s rate sheet highlights the disappointing returns from taking a term longer than five years. The bank’s non-registered rates peak at 5.75 per cent for one year and decline gradually to 5.1 per cent for five years. For six, seven and 10 years, you get 4.5 per cent.

Another consideration for long-term GICs is the lack of liquidity. If your financial goals change over time, breaking your GIC could be costly in penalties or foregone interest. This risk exists for four and five year terms, but seven and 10 years seem to present a higher level of risk that you’ll change your mind about your investments.

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Stock market today: Asian shares rise, buoyed by Wall Street rally from bonds and oil pricesTOKYO (AP) — Asian shares advanced Thursday after a plunge in oil prices aided a recovery on Wall Street. Benchmarks rose in Tokyo, Sydney and Hong Kong. Trading was closed in Shanghai for a holiday. Market sentiment was helped by a $5 decline in oil prices on Wednesday, although prices recovered slightly in Asian trading. Lower energy costs would relieve inflationary pressures that have led central banks to keep interest rates high. Japan's benchmark Nikkei 225 jumped 1.8% to finish at 31,075.3
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The best case to 'stem the bleeding' in bonds won't be good for stocksSome on Wall Street think stocks need to fall further for yields to decline.
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U.S. stocks, bonds struggle as rate uncertainty lingers - BNN Bloomberg​Global markets steadied on Thursday, with U.S. equity futures and bonds trading slightly weaker as investors looked ahead to data on the labor market.
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