Quote:
Originally Posted by Slava
Well those rates are all relative though. So if you have a double digit GIC, and you think you're way ahead of the game, but inflation is 12%, you're basically guaranteed to lose money. Similar to this past year where you could get 5% from GIC's...but inflation was running at 8%.
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That certainly wasn't true in the 1980s. You could get 9-10% GICs from 1983-1991 when inflation was only 3-4%.
And even for most of the '90s and early '00s you could get 5-7% GICs when inflation was under 2%.
It was only really after 2008 that real returns on GICs went negative.