Financial Pain Comes From Higher Interest Rates
Interest rate increases are necessary but painful, writes Peter Watson. There is a whole lot of financial pain being inflicted on Canadians. This comes in the form of the Bank of Canada raising interest rates again by one half of one per cent. This is the seventh time in 2022 the central bank has raised […]
Many struggle with high inflation
Managing personal finances is harder during inflationary times, writes Peter Watson. When it comes to how inflation affects Canadians there is good news and bad. Three out of four Canadians reduced their spending to help them cope with higher prices, according to a Maru Public Opinion Survey. The reality is people have different abilities in […]
Investments Too Good to Be True
Another large speculative company fails, and investors lose billions, writes Peter Watson. In life, people like to pick a winner, and this is certainly true in the world of investing. But this can sometimes backfire. Until recently, FTX was a global giant as a cryptocurrency exchange platform. According to CNBC its value was $32 billion. […]
Stock Market Can Provide Useful Investing Insights
Understanding how the stock market works can be a useful guide to personal investing, writes Peter Watson. Do you want to know the best place to look for reliable information on the stock market? The answer is simple. Look to the stock market. The reason is buyers and sellers come together to trade a stock. […]
Stock Market Volatility Can Leave You Depressed
There is a reason why the normal ups and downs of the stock market can leave you depressed, writes Peter Watson. It has to do with human behaviour. People are emotional. Investors value gains and losses differently. A loss has more significance on an investor than a gain of an equal amount. For example, if […]
The Challenges of Another Interest Rate Hike
Many households will feel the pain of the most recent interest rate hike, writes Peter Watson. Plus, the cumulative effect of so many rate hikes over such a short period of time could be unmanageable. The Bank of Canada’s most recent increase to the cost of borrowing is one half of one per cent. That […]
Financial Pain is on The Way
Beware, the financial storm clouds are closing in, writes Peter Watson. That was the tone of a recent warning by Finance Minister Chrystia Freeland. Her conclusion was that many households are going to be adversely affected. Interest rates are being aggressively increased to try to control inflation. That will slow the economy, businesses will suffer, […]
How to Build Your Investment Portfolio
A good portfolio will address two important principles. Investing to achieve a higher expected return and managing risk, writes Peter Watson. As an example, we will consider saving for your child’s university education. The same logic can be applied to other financial objectives. Assume a university education will cost $25,000 per year over four years […]
Investing – A Time to be Brave
Investing in the current climate can be challenging, writes Peter Watson. The stock market has been volatile with many significant declines and bonds, that are meant to be a safe haven, have done poorly too. Then there is that sacred asset that Canadians are so proud of: Homeownership. Rising home values over a prolonged period […]
Dementia Could Be a Significant Financial Risk
Dementia is a financial risk that should be considered, writes Peter Watson. Managing personal finances can be complicated even when you are mentally alert. If your cognitive ability declines, then managing financial affairs could shift from difficult to impossible. The Alzheimer’s Society of Canada recently issued a report titled Navigating the Path Forward for Dementia […]