Globe & Mail
March 27, 2023.
If registered retirement savings plan (RRSP) season is a market bellwether, investors are betting on more volatility ahead and believe interest rates will remain high for a while.
For the first two months of this year – the time when many contribute to their RRSPs – investors poured money into fixed-income products including guaranteed investment certificates (GICs), high-interest savings accounts (HISAs) and short-term bonds. All are paying interest of roughly 5 per cent, well above rates offered on those products during last year’s RRSP season.
“We’ve been somewhat cautious and very selective about where to invest the contributions,” says Ida Khajadourian, Portfolio Manager and Investment Advisor, “depending on the client’s risk tolerance and objectives.”