Market Outlook Investing when interest rates are zero are driving up bond values. Ten year US treasuries are down to a yield of 0.6%, down from 2.0% a year ago. Interest rates will likely creep back up a bit as central banks take their foot off the gas, at least a little. This is expected to reduce the valuations of bonds soon. He expects the global economies will recover eventually after this. In ten years time we think of this event as a distant memory. Don't get used to mortgage rates being this low forever. His free website is steinbergwealth.com.

BoC interest rates? He thinks the Bank of Canada is following the footsteps of other central banks. We have probably seen the last cut from the BoC and we are in a good position now.

Canadian banks? He has a Canadian dividend fund they started this year and it holds a lot of Canadian banks. When some bank share prices tumbled as much as 50%, they still did not cut dividends. The share price could be volatile and since they offer tremendous value in the long run and are well capitalized against loan losses, they are a good buy. The Canadian government is doing all it can to ensure the economy will survive. And the dividends are secure.

Energy into Gold? He is not a short term trader. He does not know the timing in a short time period to bet that gold will go up versus oil. It is more a gamble than an investment. It is easier to think of companies you can buy and hold for 5 years that he would be happy with. Neither sector has done well over the long term when you look historically at their capital allocation strategies.

Blackrock Municpal Bond Trust? Muni-bonds are only attractive for Americans, because of the favorable tax treatment. It does not make sense for Canadians.

Silver? Both silver and gold have been in vogue lately because of low interest rates. A number of countries are struggling, so when currency is declining people want protection through metals. These have been poor investments over the long run. Silver will likely under-perform so many good companies going forward.