By Ian Ardill
Are you concerned about inflation eating away at your portfolio?
The Bank of Canada has identified inflation as “transitory but not short-lived,” and thus has signalled it could raise interest rates as soon as April 2022.
Traditionally, people mitigated the risk of higher inflation by buying fixed income instruments including bonds. But now, with interest rates about to rise, leaving money in fixed income may leave you feeling disenchanted – because as interest rates go up, bond prices go down.
How are you positioned against the erosion of inflation? Would you like to have a portfolio review and talk about it early in the New Year? Just let us know.
