The column asks whether bonds in a portfolio should be swapped for GIC ladders or money market funds. The author argues that the stock-bond correlation is typically low rather than negative, so bonds mainly improve risk-adjusted returns rather than absolute ones. GIC ladders offer steady income, often with CDIC protection, and avoid volatility, but fixed rates can be eroded by inflation and GICs lack the liquidity of bonds. Alfred Lee of Q Wealth Partners says GICs can be a great solution, but for a relatively short period, and the author suggests a combination of holdings rather than swapping out the entire bond allocation.
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Original headline: Should you swap out your bonds for GICs ?
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