If you want to hold bond funds…

Article Excerpt

The Bank of Canada is holding interest rates steady, even though the current inflation rate of 2.6% is above the bank’s 2% target. The bank doesn’t want to slow Canada’s economic growth with higher rates, or push the dollar any higher. Still, the long-term outlook is for higher interest rates. The heavy deficit spending of the past few years and the expansion of the money supply, which is still underway, increase the potential for higher inflation. We continue to advise against investing in bonds right now. Today’s low interest rates make them unattractive now, and rising interest rates would push down their future value. However, if you need stable income and want to hold bonds, here are two bond funds that have low fees and high-quality holdings. ISHARES DEX SHORT TERM BOND INDEX FUND $28.94 (CWA Rating: Income) (Toronto symbol XSB; buy or sell through brokers) mirrors the performance of the DEX Short Term Bond Index. This index consists of a wide range of investment-grade…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.