The Quest for Income as rates fall | Page 2 | General financial discussion | Discussion forum

ExtraSauce said
October 2024
GIC/term rates tanking, stock market inflated and overbought so I won't be stepping into equities in a big way until we get a decent pullback.

Treading water with increasing RRSP drawdowns seems to be a plan.

Ideas?  

So you say the stock market is now inflated and overbought and you won't be buying equities. So I presume you bought equities when you determined equities were underpriced and good value.
The fact that interest rates are dropping quickly now is a big boon to the equities market. There is a lot of cash which was tied up in GICs in the high interest period (earning 5% and 6% last year) and as those GICs are maturing, a lot of people are moving that cash into equities including high dividend quality stocks eg Royal Bank, Enbridge, Telus and so on. You are going to wait for a pullback - what do you consider to be a pullback and good time to buy? a correction of 5%, 10%, 15%?
At this point, I am not convinced bonds provide much advantage. You may still be more comfortable taking a GIC @ current rates 3% - 4%. No doubt in my mind those rates will be dropping even more over the next few months.