How strong oil demand will keep prices above US$100 a barrel despite recession fears Dale Jackson looks at the pros and cons of seg funds and whether the added cost of security from insurance products is worth it. But these products have their drawbacks including the high cost – making it important for clients to consider the entire picture. Investors nervous about how high inflation and market volatility will affect their retirement income may be considering the security that segregated funds provide as they invest like mutual funds but guarantee part or all of the principal. Is guaranteed investment protection of seg funds for retirement worth the cost? Helen Burnett-Nichols reports on how returning retirees can benefit from advanced planning around investments, taxes and cost of living considerations. But for returning retirees who have accumulated assets elsewhere, the move back can come with complexities. The desire to live closer to family, lifestyle reasons, or worries about future health care costs have led many ex-pat professionals who have built their careers in other countries to choose to return to Canada for their retirement years. What to consider before moving back to Canada to retire Shirley Won speaks to three dividend-fund managers for their top picks. That, of course, provides opportunities to buy stocks on sale. Even shares of high-quality, dividend-paying companies can get overly punished because of negative sentiment in a sharp, market downturn. Investors may want to do some bargain hunting given that many stocks have been beaten down amid concerns over rising interest rates, inflation, recession and industry-specific headwinds. Six bargain dividend stocks for investors to play a market rebound Jameson Berkow speaks to experts who say there might be a period of structurally higher inflation than it was over the past five to 10 years, which makes RRBs and TIPS a good investment. Treasury Inflation-Protected Securities (TIPS) have been among the best performing fixed-income products this year amid one of the worst bond market sell-offs in a generation. Real return bonds (RRBs) in Canada and U.S. How peak inflation still leaves value for inflation-linked bondsĮven if inflation has already peaked, some money managers still see inflation-linked bonds as a major long-term investment opportunity. Brenda Bouw, special to the Globe and Mail Must-reads from Globe Advisor this week “It just feels like you’re getting a strong dividend yield and an attractive price relative to equities and private real estate.” “That’s not to say we won’t possibly see another 5 or 10 per cent correction from here, but when we sit back two or three years from now … we believe it’s a good entry point,” he says. He believes the current rising interest rate market is an appealing time for investors to load up on REITs that are “on sale.”
During that time, REITs rose more than 30 per cent and equities were up 8.5 per cent. Federal Reserve Board increased interest rates a whopping 17 times, or 425 basis points, to 5.25 per cent from 1 per cent. He points to the 27 months between 2004 to 2006 when the U.S. Russo says they typically outperform broader equities in the longer term. led the global REIT market as its economy was the first to reopen from pandemic-related lockdowns.Īlthough REITs do tend to suffer at the start of a rising interest-rate cycle, Mr. Russo says, noting that it’s the inverse of what happened last year, when the U.S. While the broader REIT sector is currently down by about 20 per cent in Canada and the U.S., it’s up in countries such as Japan, Hong Kong and Singapore. The REIT market is also different geographically, he notes.
Russo, who runs Hazelview Global Real Estate Fund, which invests in publicly-traded REITs mostly outside of Canada. “That contractual lease gives you the protection in a downturn from an earnings and cash flow perspective,” says Mr. Russo says the sector provides recurring income, including in a recessionary environment. Real estate investment trusts (REITs) are still attractive for investors when interest rates are rising because they offer steady distributions based on contractual lease agreements companies have with their tenants, as well as the ability to raise rents.Īnd while not all REIT sectors are the same – for example, office and commercial spaces have generally underperformed in the pandemic era compared to better performing multi-family residential and industrial names – Mr.