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PeanutButter · 07-10-2023, 07:01 PM

The only people who care about a 5% GIC are old people with cash.

Don't forget the S&P's average annual return is 10%, so when the risk free rate gets closer to that number, more people will simply go with the risk free rate. Risk free rate referring to GIC's and the like.

There are many in my parent's generation, my uncle included who lost their shirt in the dot.com bubble and ever since then, they have never invested again. There are also many who know people who lost their shirt in the dot.com bubble which affirmed their belief that you shouldn't invest in the stock market and that it's "dangerous".

07-10-2023, 07:01 PM	#26811
PeanutButter I contribute to threads in the offtopic forum Join Date: Jun 2013 Location: Burnaby Posts: 2,626 Thanked 3,085 Times in 838 Posts Failed 412 Times in 112 Posts	The only people who care about a 5% GIC are old people with cash. Don't forget the S&P's average annual return is 10%, so when the risk free rate gets closer to that number, more people will simply go with the risk free rate. Risk free rate referring to GIC's and the like. There are many in my parent's generation, my uncle included who lost their shirt in the dot.com bubble and ever since then, they have never invested again. There are also many who know people who lost their shirt in the dot.com bubble which affirmed their belief that you shouldn't invest in the stock market and that it's "dangerous".