Paul de Sousa Discusses How to Invest as Inflation and Interest Rates Rise with the Winnipeg Free Press
As prices continue to rise, investors are experiencing the highest inflation rates in decades. In turn, investors will likely have another challenge to deal with soon as the Fed tries to stop prices from continued soaring: interest rate hikes. To learn more about how investors can tackle this double-edged sword, Winnipeg Free Press spoke with Paul de Sousa, senior investment advisor at Sightline Wealth Management, for insight
“Overall, inflation and rising rates at the same time are like a tax on wealth,” de Sousa tells the publication. This causes investors to not only pay more for goods and services but also potentially their debts as well. “So, it’s a double-whammy,” he explains.
Fortunately, there is at least one benefit of this type of environment. According to de Sousa, rising interest rates will eventually lead to higher payments from bonds and GICs. However, before this payoff, he says investors should re-evaluate their investments, debt repayment, spending and saving. “In particular, those close to retirement or retired face the most risks, and so it’s really worth their while to revisit those retirement projections sooner than later,” says de Sousa.
Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors primarily through fee-based accounts.
Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc.
(“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds.
Sightline Wealth Management (“Sightline”) makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Sightline assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Sightline is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Past performance is not indicative of future performance. Please speak to your Advisor regarding the suitability of information provided in this article for you. The opinions, estimates, projections and/or recommendations contained in this document are those of the author as of the date hereof.