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ARTICLE · 27 JANUARY 2003

Is the Popularity of Income Trusts a Fad?

CanadaWealth Management

Originally published in October 2002

The income trust segment of Canadian capital markets is here to stay and will continue to grow, says Seymour Temkin, Senior Business Advisor at Goodmans. The segment will continue to challenge equities and bonds for investor attention for two main reasons:

  • We live in an age of low interest rates and low inflation
  • . This return to 1960’s-style economics is likely to prevail for the next ten to fifteen years. At points of time along the way interest rates, and for that matter inflation, will spike up, but those spikes will not be sustainable. In this environment, income trust will remain attractive.
  • A large and growing segment of investors have shifted their criteria…permanently
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