Financial Stability on Pins and Needles
The new variant of COVID-19 has increased the financial worries of Canadians, writes Peter Watson. Last week the Bank of Canada warned that interest rate increases were likely to happen in the first part of next year in order to put the brakes on inflation. One particular concern we have seen is the rising prices […]
What Companies Should You Invest?
Owning many stocks in your portfolio may be a good investment strategy, writes Peter Watson. My suggestion is to change your perspective on investing. Don’t focus on which companies to invest. Expand your focus to be much broader. Considering having a globally diversified portfolio that could have many different companies. In effect, you are buying […]
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 […]
Invest in Stocks – Prepare to Lose
There will be a time when you lose money. That is a certainty. The assumption is based on a broadly diversified portfolio versus owning just a few stocks. Information is taken from the S&P 500, a US stock index. Yes, some years you win when your stock portfolio increases in value. Winning is easy. Anyone […]
Will the US Election Affect Stock Values?
Fama/French Total US Market Research Index 1929 to 2020 shows the increasing value of US stocks. The political party of the President has not been a significant influence on stock market performance. Will the US election outcome affect the value of your US stocks? This is a question that investors are asking these days as […]
Speech From The Throne: Our Path Forward
The Speech from the Throne outlined the federal government’s plan to deal with COVID-19 and the financial support it intends to offer Canadians, writes Peter Watson. Last week, the Liberals gave Canadians the equivalent of a Business Plan. The Speech from the Throne provided a strategic direction for the government. The main objective is COVID-19 […]
The Toronto Maple Leafs disappointing season teaches us a lesson about diversification
Cheering for just one favourite team is fine. Owning just one investment and hoping for success is dangerous, writes Peter Watson. Our beloved Toronto Maple Leafs just taught us a lesson about diversification. Since the last time the Leafs won the Stanley Cup in 1967, fans have been hoping for another triumphant hockey season. The […]
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 […]
Questions for a potential financial advisor
A financial advisor’s role is to help clients work toward their financial goals. Finding a qualified advisor you feel comfortable with requires careful evaluation. Last week this column discussed hiring a financial advisor based on the services provided, and the cost of those services. Today we will consider some specific questions you might want to […]
Avoid Investment Fads
Sound investment strategies are based on long-term realities, not short-term fads. Unfortunately, human nature can make speculating and guessing too resistible to refuse. In reality, investing is not guesswork. Over the years I have had the opportunity to listen toNobel laureate Eugene Fama speak at investment conferences. Many regard Professor Fama as the person who […]
