Tough financial decisions ahead
COVID-19: Canada responds with financial support, writes Peter Watson. When Canada suddenly found itself in the COVID-19 crisis I was extremely impressed with the government’s quick response to support Canadian businesses and workers. Prime Minister Trudeau, from the very beginning, was offering support and was handing out money by the truckloads. To me that was […]
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 […]
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 […]
Seven Steps to Building an Evidence Based Investment Strategy
Use what is known about investing to your benefit, writes Peter Watson Evidence-based investing uses research and what is known about investing to the benefit of individual investors. The evidence applies to solid investment principals and human behaviour that greatly impacts individuals decision-making ability. This column will provide seven solid principles of how to best […]
Understanding the Stock Market will Lead to Success
Investor patience and courage is needed, writes Peter Watson. Stock market investing success comes from investing long-term, ignoring the temptation of selling during volatile times and not missing significant stock value gain best days. This leads to higher investment returns and lower anxiety during times of volatility. Investment risk is measured by volatility. The value […]
Buy and Hold Stock Advice Could Backfire
The best financial planning advice might just prove to be your worst nightmare, writes Peter Watson Investors without adequate diversification are at risk under the current stock market volatility. Concentrated positions in companies that do not recover will cause financial harm. Evidence-based investing proves diversification is essential protection for your investment portfolio. The traditional advice? […]
Stock market’s volatile reaction to Brexit vote is normal
Investors act differently when they are scared. Most of us don’t like to admit that emotions can control our actions, however, neuroscience tells us a different story. Evidence shows that emotions can play a large role in decision-making and can, at times, lead to choices that are not in our best interests. The recent stock […]
Investing can be an emotional rollercoaster
During periods of stock market decline the one haunting and fearful question in most people’s minds is how much can the value of my portfolio decline. Investing in stocks, or mutual funds that own stocks, assumes investment risk. That risk has no specific boundaries. Last week’s column talked about the importance of discipline and acknowledged […]