Stock Market COVID-19 Volatility
Stock market volatility as measured by the S&P 500 demonstrates the fears and uncertainty of these troubled times, writes Peter Watson. Welcome to the roller coaster world of investing. The stock market volatility has been extreme and set new records. The emotional stress on some investors can be significant. Many will have bailed on their […]
Timing the Stock Market Can be Risky and Costly
Consider a long-term buy-and-hold strategy, writes Peter Watson S&P 500 data over 50 years shows the enormous cost of timing the market and missing out on the best days of stock performance. Long-term stock investing can be less risky with a buy-and-hold strategy. The trouble with timing the stock market, and selling to avoid an […]
Scams and fraud are a real threat
Canadians need to re-think how we combat scams and other attempts of theft, writes Peter Watson Scams and frauds are part of everyday life. Policing is difficult because most cases are not reported. The Canadian Anti-Fraud website is a useful source of information. Protect yourself by anticipating fraud attempts will occur against you. As an […]
Home Ownership Dangerously More Accessible
Allowing more homeowners to qualify to purchase a home has many inherent risks. Buyer Beware, writes Peter Watson. A change allowing more home buyers to qualify for a larger mortgage started April 6, 2020. This move could backfire. The change has to do with the “stress test” implemented a few years ago to help cool […]
Stock market declines can result in panic selling
In 11 out of the last 15 recessions, the value of the US stock market fully recovered in two years. In all 15 recessions the market eventually recovered every time, writes Peter Watson. Losing money in the stock market can drive some investors away from owning stocks altogether. There are two problems. First, you see […]
Stock market volatile annual returns
The formula for success is holding stocks for the long-term, writes Peter Watson. Since 1926, as reported by S&P, the average annual return for the US stock market is very close to 10 per cent. That includes the Great Depression of 1929, one of many times the stock market crashed. Returns vary between positive and […]
Are you Making an RRSP Mistake?
Many Canadians squander some of the benefits of making an RRSP contribution, writes Peter Watson. Many Canadians fail to take advantage of income tax rebates resulting from RRSP contributions. That rebate could be included in your long-term financial plan and used to finance other investments as opposed to treating it like “free money” and spent […]
Personal income tax returns should be automated
Using technology will save Canadians and the government time, energy, and money, writes Peter Watson Canada should follow other countries and automate the current personal income tax filing system. Filing personal income tax returns in Canada is embarrassing, a complete waste of time and energy. Plus, it’s expensive, both for the government and individuals. Automate […]
Protect Yourself Against Fraud
Canadians are being targeted and they should protect themselves, writes Peter Watson Have you been scammed yet? If not, it’s just a matter of time. Fraud attempts include CRA scams, request from a romantic partner, identity theft, and bogus investment schemes. Just under half of all Canadians have either been scammed or know someone that […]
Protecting your investments before a stock market crash
Address this before a stock market crash, not after, writes Peter Watson Protecting your assets is the key to investment success. Perhaps consider diversifying your portfolio with more than one asset class and security type to mitigate downside risk exposure during times of market volatility. A popular question after severe stock market crashes is how […]