Based on the flow of money, Strategic Insight Canada believes Canadians are making the decision to switch from investing to paying down debt. The theory is based on the drastic drop in money going into investment products of all types in late 2018 and early 2019. Strategic Insight ruled out a worsening economy because of the lack of money going into deposits such as savings accounts and guaranteed investment certificates. Currently, this trend has resulted in total debt levels being lower than they were during the recession of 2008.

“The conclusion drawn by Mr. Cardone from these money trends is that people are paying down debt with money they would otherwise have invested.”

Read more: https://www.theglobeandmail.com/investing/personal-finance/article-a-lot-of-canadians-seem-to-have-stopped-investing-to-pay-down-their/