ROB CARRICK, The Globe and Mail
We have ourselves a bull market in the unlikeliest of places – guaranteed investment certificates. Worn down by bad news both in and out of the financial world, investors are turning to GICs for a combination of much-improved interest rates and safety. At GIC Wealth Management in Toronto, the number of GIC transactions lately is close to double the level of last year.
“We have a war going on in Europe, there’s a potential recession and inflation is at record highs,” said Kevin Rotenberg, a principal at GIC Wealth. “People see 4 per cent on five-year money with zero risk and they can accept that.”
Money flows into GICs are also up substantially at Conservative Investors’ Services in Toronto and Victoria-based GICdirect.com. Stocks, particularly those in speculative sectors, had a great run in the past couple of years. Now, GICs are having their moment.
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