Canada’s Yield Curve Inverts Most in 12 Years on Trump Tariffs – Bloomberg

The yield curve on Canadian government bonds inverted the most since early 2007 as investors flocked to bonds on concern that Donald Trump’s surprise threat to impose tariffs on Mexican imports could derail the revised North American Free Trade Agreement.
— Read on www.bloomberg.com/news/articles/2019-05-31/canada-s-yield-curve-inverts-most-in-12-years-on-trump-tariffs

Visco Says Italy’s Debt Load Is ‘Severe Constraint’ on Economy

Italy urgently needs a “credible” strategy to cut a public debt load that risks imposing a “severe constraint” on the economy, European Central Bank Governing Council member Ignazio Visco said. The ratio of debt to economic output may exceed the levels targeted by the government in its latest plan,
— Read on ca.finance.yahoo.com/news/visco-says-italy-debt-load-083350758.html

Yield Curve’s Turn Puts Microscope on Next U.S. Economic Reports

It all puts even more weight than usual on the next round of economic reports, starting with Thursday’s revised reading of first-quarter growth and culminating with the May jobs report on June 7. Investors have also been fretting about the U.S.-China trade war after President Donald Trump raised tariffs
— Read on ca.finance.yahoo.com/news/yield-curve-turn-puts-microscope-090000131.html

Building a Simple Bond or GIC Ladder for Retirement

How to build a Bond or GIC Ladder is a simple three step process.

  • Decide the amount of money to put into a Bond or GIC for the longterm $50,000, $100,000, $200,000 etc.
  • As longterm interest rates are on the upward trend decide on what increments to invest in, 3rds, 4ths, 5ths.

Example: Intial Investment $50,000 (Split over 5 years equally)

Year 1 – $10,000

Year 2 – $10,000

Year 3 – $10,000

Year 4 – $10,000

Year 5 – $10,000

At Year 6 reinvest Year 1 into a new Bond or GIC, and keep repeating as each Bond or GIC needs to be renewed.

  • The benefits paying taxes on only one-fifth of the interest earned on the Bond or GIC and protecting oneself as interest rates rise (positive) or as interest rates decrease (negative).

Author – Sam Latella – copyright 2019