Community rating is a dramatic change, and it will result in
substantial inflation for small groups that had previously enjoyed low rates based on younger, exceptionally healthy employee populations — like ours.
The idea was that politically independent central banks would take control of monetary policy from government treasuries that had become the de facto monetary policymakers during World War I and had created
substantial inflation in many countries.
Goods and services that can not be imported from Asia have had
substantial inflation in recent years — we shall only mention the cost of health care and education.
For most Canadians, ownership of a family home provides
a substantial inflation hedge, and it also comes with substantial tax benefits.
TIPS (Treasurey inflation - protected securities) should be in everyone's portfolio... We got this massive fiscal and monetary stimulus, it is hard to see how that does not translate in to
substantial inflation... down the road.
For most Canadian investors, our investing advice is that ownership of a family home provides
a substantial inflation hedge, and it comes with substantial tax benefits, as well.