Investment Management and Financial Planning Thoughts

Markets started the day off in the green this morning after U.S. consumer confidence rebounded in March and home prices rose in January for the 8th straight month. Markets have shifted to the red as financials and energy have slipped a little. With all this data currently pointing to economic recovery the real question is what happens next year when stimulus is removed and interest rates are on the rise. Last week Mark Carney acknowledged inflation is running higher than predicted in Canada due to a higher level of economic activity. In the U.S. Bond investors are signaling rising rates. Credit Suisse pointed out that although bonds inflows are higher than equity mutual fund inflows, much of the new money is going into inflation protected and short term bonds signalling inflation fears and rising interest rates. For a second opinion on how to manage your investments in rising interest rate environment visit us at yourlifeyourplan.ca.