GIC Risk

When GIC investors have the information necessary to compare the safety and return of a GIC with the safety and return of a welldiversified conservative portfolio (WDCP), they usually choose the WDCP. The main reason is safety—and by safety I mean safety against stock market risk, inflation, and income tax. Simplicity and liquidity are the additional benefits of a WDCP. Of course, if you are comparing a GIC to speculative stocks, a...