Market Outlook In Canada, debt is running at 170% of income with investors. The US is only about 110%. This high household debt level does not leave much room for a family to absorb interest rate hikes. Unless Canadian start earning a lot more in income, he thinks there could be more defaults ahead. This have been build over the past decade. Unfortunately, there is no single government policy to deal with the risk. He thinks investor complacency at high levels, with volatility plummeting. Now another correction is likely coming.

Fixed Income vs. Equity? You should think of this over a long time period, depending on your needs for income. He is about 25% cash right now. To be defensive, hold cash -- not fixed income. You need to be aware that bonds can create as much risk as equity, depending on which issue you hold.