Bank of Canada Issues Financial Warning
The Bank of Canada issues a warning about our financial health, writes Peter Watson. Several warning signs indicate the financial prosperity of people living in Ontario will decline. Canada needs to Improve productivity by increasing investments in machinery, equipment, and intellectual property. A senior Bank of Canada official said last week that we have reached […]
Investment Diversification Can be Misunderstood
Some investors misunderstand the importance of diversification, writes Peter Watson. The concept of having strong diversification with your investments can be misunderstood. Let’s consider the example of an investor who prides themselves on taking risks. That person is not afraid of risk and sometimes that characteristic can reflect the type of person they are. You […]
How a Flock of Birds Can be Similar to a Group of Investors
The instant changing pattern of a flock of birds can resemble the behaviour of investors, writes Peter Watson. This column is going to call on mother nature to help us understand how investors can react when making investment decisions. Have you ever noticed a flock of birds suddenly change course and amazingly all the birds […]
Women May Have Financial Planning Challenges in Later Life
Retirement planning for women should take several things into consideration, writes Peter Watson. Women’s finances can get difficult. If a woman is married or in a long-term relationship, often she is younger than her husband. Plus, a women’s life expectancy is longer than men’s. A woman could outlive her husband by 10 years. If the […]
Was 2023 a Good Year to Sell Your Stocks?
Investors sold stocks in 2023 and missed out on significant gains, writes Peter Watson. Should you have sold your stock holdings last year? Consider significant world events because many investors use that information as an indicator of how to invest. If bad news is a reason to get out of stocks, we had plenty of […]
The Shock of Higher Mortgage Payments Could be Just Around the Corner
Most homeowners face higher mortgage payments in the next two years, writes Peter Watson. Last year many homeowners escaped the burden of rising interest rates pushing their mortgage payments higher. That will soon change. Interest rate increases do not immediately affect all existing mortgages. For example, if you have a five-year mortgage at three per […]
2024 Stock Market Could be Volatile
US political uncertainty plus two wars could result in a volatile stock market this year, writes Peter Watson. There are many reasons why 2024 could have a very volatile stock market. Stock market volatility can be caused because investors are nervous. And there are several things this year that can make us nervous. The wildcard […]
Your Personal Financial New Year’s Resolution
Find the mistakes you are making with your personal finances, writes Peter Watson. I have a suggestion for your new year’s resolution. But first a story. When my children were young, before they took an examination at school, I would ask them an important question: What are the chances you will get a perfect score? […]
Three Types of Investment Risk
The more you think about investment risk the more you realize the different ways your investment returns might be lower than expected, writes Peter Watson. The problem with risk is it comes in several different forms. The first risk is having poor investment returns. This is the one that gets all the attention. One option […]
Longevity is a Financial Risk
Running out of money during retirement is a possibility, writes Peter Watson. Planning your finances for later years often focuses on reaching retirement: work hard for decades for your golden years. Most attention is on earning an income and paying the bills. Managing ongoing living expenses is important. But it is only a start. Reaching […]