Safe investments with reasonable returns

Severe stock market corrections like the Dow’s 23 per cent plunge in 1987 and the mysterious derivative trade that led to a 600-point drop in the Dow on May 6 this year have helped drive small investors out of the market.

Canadians, growing increasingly weary over market volatility, entered 2010 sitting on a mountain of cash – about $1 trillion to be exact, mostly in bank accounts and GICs. And over the course of the year they’ve pumped another $100 billion into bank accounts.

On the surface it might look like a sensible thing to do. After all, you can’t lose money if it’s squirreled away under a mattress or in a bank account.

Or can you?

Because all this money is largely stowed away in savings accounts and GICs, all you can earn on a short-term savings account is about 0.25 per cent and on five-year deposits about 4 per cent. (more)

Using this one method I turned a $14,000 trade into a $75,000 profit in just 8 months.