The Rural Voice, 1999-01, Page 31the term until maturity, the higher the
return. But recently, short-term
interest rates have been moving up
relative to Tong -term rates. This has
caused the traditional 'yield curve' to
flatten.
"There is a lot of volatility in the
market right now," says Harriet
Shenken, Assistant Vice -President,
Retail Investment Products at Canada
Trust. "Uncertainty in the global
economy has caused short-term rates
to go up. But the market indicates
thatover the longer term, interest
rates will be lower."
Jt is expected that downward
pressure on rates will continue
well into 1999, meaning that
Canada's conservative and fixed-
income investors are going to have to
look at strategies to protect
themselves against further volatility,
and the impact lower rates may have
on their future earnings.
"Investors in income -generating
products are going to want the best of
both worlds," Shenken says. "A good
rate of return and flexibility to
reinvest for better returns."
Recent innovations in the
development of fixed-income
products means that investors can
realize the flexibility they require
without giving up on the benefits that
have historically made GICs an
attractive investment: low risk,
security and guaranteed returns.
Some GICs offer investors the
flexibility to fully or partially cash or
convert their investment prior to
maturity, should they need the money
or if interest rates increase.
Canada Trust offers a three-year
Quarter Back GIC which pays you a
higher guaranteed rate of interest
than its regular three-year GIC, with
the added advantage that you are able
to withdraw up to 25 per cent of your
initial deposit before maturity
without penalty.
Cautious investors who would like
some exposure to the stock market
may want to consider an equity -
linked GIC. With most of these
GICs, your principal is guaranteed
and your return is based on how the
stock market performs over the term
of your investment, as measured by
the performance of an index or some
combination of indices.
For investors who have $50,000
or more in GICs, staggering the
Art
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RBA
f/NANC/AL GROUP
Partners in your WEALTH MAP"
MEAFORD, ONT.
R. Todd Campbell, BBA, CMA
"A Farmer Helping Farmers"
Assisting you with
• Farm Transfers
• Estate'Planning
• Tax Minimization
• Retirement Income
• Off -Farm Investments
Please call me at 1-800-567-1941
for more information or to arrange
for an appointment
JANUARY 1999 27