Yeah that’s definitely a feel good , happy for ya

Rough ass few months it’s been

10 year hitting 4.99

You can get a 10 year 5.1% GIC from Canadian banks right now.

I mean the banks going to use that money and lend it out at 8% on a mortgage so they're still arbitraging a good spread but 5.1% per year for 10 years is really nothing to scoff at. Id hit my goals with that if inflation becomes tame.

Only an issue if you're looking to retire soon. From what I have read and can understand, there is more pain ahead -- but if you have some cash for this, can be an opportunity to buy. I only started investing in the last 3 years, you don't want to know what my return is and I won't share because it's embarrassing lol!

Yeah, I'm not moving from holding 100% equity investments but I can see it being attractive for some older individuals looking for fixed income.

Or for that matter just individuals who will easily achieve their goal or live off of that return.

This post was edited by SBD on Oct 19 2023 02:03pm

What do you think about dividend investing? I have been buying a handful of different dividend stocks, seems to be nice to have them when growth stocks are getting thrashed and you still get paid once per quarter, which you reinvest and compounds over the long run.

For myself who is near the top of my earnings curve in life dividends don't make much sense for me. They're going to be taxed at the highest tax bracket since that's where my marginal rate sits and so even with a favourable eligible dividend tax credit I am still paying a significant amount of tax that will reduce the amount I am reinvesting.

Id rather accumulate capital gains at this point in time and realize those gains later in life when my annual income is lower and i'm likely in a lower tax bracket. Essentially deferring tax until a favourable time.

That does not stop me from investing in stocks though that do have a dividend or I think are near their bottom, but that's a case by case basis and I'm not building out a value investing based portfolio.


Edit: I should say that when I do purchase dividend based stocks though I try to do it in tax advantaged accounts. Asset location is just as important as asset allocation in my opinion, especially if you're Canadian, TFSA, RRSP, FTHSA.

Id wager one of the most overlooked things is asset location because people don't necessarily understand the tax implications of different't things and time value of money. Its not doing you any good to be paying a bunch of tax now when you could be getting a compound return on that money.

This post was edited by SBD on Oct 19 2023 02:43pm

Great thoughts - thank you so much for the insights!

With interest and yield rates where they are I wonder if were going to see a reversal in bond ETF"s , if your bet is we're near the top of where interest rates are going.

This is my bet

Loaded up tlt and vteb

It’s gonna be choppy til 11/14 before we know if September cpi was a blip or a trend

Imo

tried to get every drop off amzn, said f it with shop

This post was edited by ChocolateCoveredGummyBears on Oct 20 2023 02:17pm