Taking a West Coast break from Winnipeg, Grant White, president and portfolio manager of Endeavor Wealth Management at IA Private Wealth, said, “I’m not surprised they left it alone for this. I think the language will definitely be the next meeting in March.” is pointing to when we will see an increase in interest rates.
Although he said the bank has indicated that inflation is becoming a concern and there is a lot of speculation about where interest rates could go, he doesn’t expect them to move as fast as expected.
“I think we’re going to see an increase in March, and then we’re going to wait and see the period to see how things go,” he said. “Some people are demanding four or five rate hikes this year, but I think it is going to be a little slower than that because I don’t think everything is as rosy as it might seem yet. So, I think the bank will take a cautious approach while trying to manage inflation concerns. I think we will see several rate hikes this year, but I don’t think we will see as much as some pundits are predicting right now.
While White expects interest rates to climb closer to their .25 overnight and deposit rates and .5% bank rate to be closer to 1%, he said that many advisors and investors who have entered the industry over the past 14 years have seen an ever-increasing interest rate. Haven’t seen the atmosphere. experience in the next few years. Therefore, investors need to align their portfolios accordingly and ensure that they adopt a multi-asset class approach and use alternative assets such as market neutral investments to generate consistent returns over the next few years.
Jackie Porter, president and founder of Team Jackie Porter in Toronto, said, “Everyone, including the market, is heaving a sigh of collective relief because I think unfortunately, Canadians, in general, and business owners get used to cheap money. And it’s a very dangerous thing.”
She is warning customers to pay attention to interest rates and the direction they are headed. She is also recommending that advisors talk to their clients about the amount of loan they are taking and their plan for it when interest rates rise, and then actually work with them on a permanent loan repayment plan. Do it. They should also speak to customers whose interest rates are variable because they have heard from different people who are Bank of Canada closed and “it is likely that we will have four or five interest rate jumps because they will soon be able to raise interest rates.” Rates are trying to normalize. Later than. Therefore, it could be a collective financial blow to people and businesses that are accustomed to cheap money as it will cost them more to live on.
