Magnifying glass on newspaper

Guarding Wealth: Canadian interest rates to rise

But don’t hold your breath — any big rate moves are at least 18 months ahead

To quote the most recent winner of the Nobel Prize for literature, Bob Dylan, “the times, they are a-changin’.” In capital markets, the U.S. Federal Reserve Board is likely to raise the interest rate it charges banks to borrow money overnight to maintain reserves — a key indicator for all other interest rates in the economy. This increase […] Read more

(Country Guide file photo)

Currency analysts watch for interest rate decision

CNS Canada — The likelihood of the Bank of Canada cutting interest rates on Wednesday is already priced into the loonie, according to one analyst — but if the bank instead decides to hold rates steady, the beleaguered currency could move higher. The Canadian dollar was trading around US69 cents (US$1=C$1.45) near midday Tuesday, which […] Read more


Low interest rates: opportunity and peril

Low interest rates: opportunity and peril

Low interest rates are tempting, but in the long run, debt always comes with a risk

Almost every Canadian farm family has four financial goals: buy a home, pay off farm and home debt, educate the kids and build up retirement savings. Satisfying all is a problem of balancing each. Very low interest rates for the last five years have made it easier to pay off debts and buy a home, […] Read more



(Dave Bedard photo)

ICE weekly outlook: Canola spikes as loonie falls

CNS Canada — ICE Futures Canada canola contracts finished higher for the week ended Wednesday, tracking the U.S. soy complex for much of the period but ultimately shooting higher due to the Canadian dollar’s sudden free-fall. The weaker currency helped improve domestic crush margins and also made canola more attractive to exporters pricing in U.S. […] Read more

bonds

Why should you invest in bonds?

Bonds no longer offer interest above dividend rates, 
but they are an insurance policy for market mayhem

Readers often ask why and how one should buy bonds. The reason used to be to get interest at a rate above what stocks pay as dividends. That does not work anymore, for bank stocks and big telecoms, for example, pay four to five per cent. Ten-year Government of Canada bonds pay 2.5 per cent. […] Read more