Why investors should understand stock market details
In Canada only 33 per cent of managers outperformed the underlying index after one year. After five and 10 years the outperformance was only six and 19 per cent respectively. Similar results were experienced by US managers. This information is from S&P Dow Jones Indices from their Year-End 2021 SPIVIA Scorecard. SPIVIA stands for Standard […]
Dollar Cost Averaging: A Strategy to Consider
When is the best time to invest? The problem is it is impossible to accurately predict how stock prices will fluctuate during the short term. Dollar cost averaging is a technique where you invest the same amount of money on a regular basis over time. For example, you could invest monthly and the most likely […]
Interest Rate Increases will be Painful
The Bank of Canada has warned us of pending interest rate increases for a long time. Last week interest rates were increased by one quarter of one per cent. Many are anticipating six interest rate increases over a relatively short period of time. These increases are necessary to slow down economic activity in order to […]
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 […]