Does TINA still apply for the stock market? Are GICs and bonds a new option for Canadian investors? + MORE Nov 1st

All about Canadian investments. Learn the ins and outs and get the latest news.
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Like many investors, I’ve seen the media and RBC report that some $10 billion moved out of chequing, savings and mutual funds into guaranteed investment certificates (GICs) in the third fiscal quarter. I’m also well aware of the increases in bond yields. Even so, unlike some of my advisor peers, I still believe the popular investing acronym TINA: “There is no alternative” to investing in the markets. However, I will add on to TINA: “There is no alternative to investing in the stock market if you want to grow your wealth.”

It’s an important distinction, and one that advisors and investors should consider before opting out of the markets in favour of so-called safer investments—in this case, GICs and bonds. Here’s why:

Will the real rates of return for GICs grow wealth?

While the lure of a guaranteed return is particularly strong in volatile markets, it’s important to consider what you’re actually walking away with and at what cost.

Since 2000, GICs have only made money for investors in four years (2001, 2006, 2009, 2020), once tax and inflation have been factored in, according to a report from Mackenzie Investments…

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