Investing and Sports Both Include Competition
Let’s compare investing with sports. In both cases you want to win. It gets more complicated when you consider investing. For every stock trade there is a buyer and seller. The buyer wants a low price, the seller a high price. In stock trading terminology there is a bid and ask. Then the two parties […]
Understanding Inflation is Important to Investing Success
Should investors worry they may receive poor stock market returns if inflation rates rise? Historically, that has not been the case. Assume the stock market gained 10 per cent during a year that inflation was three per cent. The first three per cent of return is needed to account for inflation. An investor needs to […]
House Value Warning Issued by CMHC
A warning has been issued that house prices have become risky for our country, writes Peter Watson. This information was just released by Canada Mortgage and Housing Corp. It issued its highest risk rating and specifically mentioned three cities, Toronto, Hamilton and Ottawa. According to the Canadian Real Estate Association, many smaller communities have seen […]
Banks Push Back on Investor Protection Reform
Banks and regulators at odds on proposed reforms aimed at protecting investors, writes Peter Watson. New reforms designed to provide better protection of individual investors has hit a major speedbump. Starting at the end of 2021, financial advisors are required to have a better understanding of the investment products they sell. This includes understanding alternative […]
Mortgage debt is a financial risk
Excessive mortgage debt is a financial risk for many homeowners, writes Peter Watson. The nagging issue of excessive mortgage debt held by Canadians continues. There is new information that the risk of excess borrowing is getting worse. This has significant implications for homeowners that might get caught carrying too much debt. Also, there is considerable […]
Investing – Measure Twice and Cut Once
An Investment Policy Statement helps reduce common mistakes investors make, writes Peter Watson. People make mistakes. That can be costly. There is a popular expression used when doing carpentry work. Measure twice and cut once. This is just another way of saying be careful not to make a mistake. Making a mistake with your investments […]
Financial Planning More Difficult for Women
Financial planning for women must account for gender inequality, writes Peter Watson. Women face financial obstacles to being financially secure. In a perfect world there would be no difference to the financial challenge between men and women. That is not the case. Women are more often underpaid when compared to equally qualified men. Earning less […]
New Investor Regulations are an Upgrade
Pending investor regulations are designed to ensure investments purchased are suitable, writes Peter Watson. Investors will benefit from changes that will be implemented at the end of this year. The central focus of new regulations is meant to ensure that investment products being recommended to you are consistent with your investment objectives and risk profile. […]
Federal Election 2021: Will it Affect My Investments?
Investors wonder how the federal election results will affect their investment, writes Peter Watson. Investors have two questions. Who will win the federal election and how will this affect my investments? We will look at the United States for some insight. It has a two-party system. Democrats are considered more socialistic and the Republicans more […]
Do not judge an investment decision by the outcome
Having a successful investment outcome does not automatically mean you made a good decision. The natural flow to an investment conversation often starts with someone saying they made a decision to buy a specific investment. Happily, the investment appreciated in value. Their conclusion is, “I made a good decision”. Not necessarily. The dangerous part of […]