Here's a quick update on markets over the last 20 months.
The current yield on 10 year CDN bonds is close to 1%...that is not a typo…the current yield on 10 year bonds is about 1%
The current rate on 5 year GIC’s at the big banks is about 1.7% so after inflation and tax you have a NEGATIVE YIELD. The money is also locked away for 5 years with no access in case of emergency. The 3 year rate is 1.5% so I suggest not going longer than 3 years in these products.
The following message is most appropriate for those close to retirement or in retirement but those concerned about volatility could also consider it:
We have been looking for investments that will help clients grow their portfolio, generate cash flow higher than bonds and GIC’s and REDUCE volatility.
We have completed our due diligence on 1 of these investments and should be done on a second one shortly. The first option is TREZ CAPITAL. TREZ invests in a diversified portfolio of conservative commercial and multi-residence, first position mortgages. The annual return based on the current economic situation should be in the 4.5% range J
THERE HAVE BEEN ZERO NEGATIVE YEARS SINCE 2006!!! (see link below)
IF YOU ARE INTERESTED IN DISCUSSING WHETHER THIS INVESTMENT IS SUITABLE FOR YOUR PORTFOLIO PLEASE CONTACT MYSELF OR GAYLE TO ARRANGE A MEETING.
THE FOLLOWING IS APPLICABLE TO MOST CLIENTS:
In order to have dedicated exposure to rising energy and commodity prices (including precious metals) I am suggesting the following SWITCH:
Sentry Global Monthly Income TO Sentry Growth and Income Portfolio. The result of this switch is increased exposure to resource and materials as well as less investment grade (low yielding) bonds.
THE FOLLOWING IS APPLICABLE TO CLIENTS WITH A 5-7 YEAR TIME FRAME BEFORE CAPITAL REQUIRED:
Nationwide Self Storage Trust will be acquiring land and building ‘life style’ storage units to capitalize on the increase in smaller condominiums in Vancouver, Toronto and Calgary.
There will be a 8.5% distribution though the actual cash flow starts when storage units become occupied (expected 2 year delay). There is also a participation in additional cash flow and eventual sale of investment.
This is a way to participate in a unique real estate investment designed to provide monthly income and long term investment growth. (see link below)
I EXPECT THESE TYPES OF INVESTMENTS TO E BECOME 10-20% OF CLIENT PORTFOLIOS (for those that qualify)
The views expressed do not necessarily reflect the opinion of Argosy Securities Inc. This does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. Please consult a professional before making an investment decision.