Canada can be considered as one of the safest countries in the entire world owing to their robust natural resource base, stellar policies, stable monetary policies and the presence of a low-budget deficit. If you are considering investing in bonds, Canada is the ideal country to do so. Some of the benefits that make Canada ideal for investing in bonds include:
- Stable rates of inflation- The rates of inflation in Canada are very stable, which is quite unlike most emerging markets in the world. This is prevalent irrespective of the humongous natural resource base that Canada enjoys. A partial reason for this is the tight monetary policies that Canada has, that lay down target interest rates of 2% and furthermore conservative bailout policies.
- Strong base for natural resources- The natural resource base of Canada is extensive, with precious metal and crude oil being part of the huge resource base. Owing to this robust backup, Canada hasn’t faced the problems that other developed countries, which are importers of net energy, usually face.
- Low-budget deficit- As of 2010, the budget deficit of Canada was only 2.1% when compared to the 9.8% budget deficit of USA. In the year 2018, Canada was further able to post a budget surplus that was 0.8% in only the first half of the year. The US deficit in that time was around 4% of their GDP. This low-budget deficit also compares favourably with a lot of Asian and European countries, thereby indicating fiscal stability and more long-term and manageable outlook.
These points clearly indicate how Canada is a great place to invest in bonds. However, investing in bonds requires legal knowledge and know-how about the many intricacies that surround such investments. Hiring a professional is the best choice in such scenarios. If you are looking for the best in the business to assist you with your investment in bonds, Best Capital Bonds is the company to approach. With our years of expertise and many favourable guarantees that we provide, we promise to treat your investments very close to our heart and provide you with the profits that you want and deserve.