News can be confusing for investors
News can be very confusing, writes Peter Watson. We live in the modern age of 24 seven news streaming at us from our smart devices. That can cause a problem. The psychology of news or more importantly how people interpret news is based on our desire to hear the bad things of life. News that […]
Financial Mistakes Should be Corrected
Correcting financial mistakes can help you achieve your financial objectives, writes Peter Watson. Everyone makes mistakes. That is normal, so consider that a characteristic of being human. Correcting mistakes does not always happen. We will consider this reality in the context of your personal financial planning. Long-term financial success can be achieved with a series […]
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 […]
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 […]
Avoid Investing in Stocks Based on Short Term Success
Beware of the “shiny object” syndrome, writes Peter Watson. One of the most difficult challenges of investors is to ignore the “noise” that often surrounds investing. Much of that noise is based on short-term results. Investing is done for long periods of time. Short term approaches to investing in my opinion are just speculation. Guessing […]
Past Tax Strategy is a Possible Solution to Provide More Residential Rental Units
There is a potential solution for Canada’s current lack of residential rental units, writes Peter Watson. It is an idea that was used in the 1970s when there was also a shortage of rental supply. Offer individual investors tax incentives. Decades ago, the top tax bracket was slightly over 50%, the same as it is […]
The environment is our greatest financial challenge
The greatest financial challenge we have left our children is the environment, writes Peter Watson. The challenge will be met, they typically are, but at what cost? Things will get worse before we are motivated to find solutions. There are two stories that have flooded the news in recent months. One is watching our neighbour […]
Financial Pain Caused by Higher Interest Rates
Bank of Canada interest rate increase will be painful, writes Peter Watson. It was a surprise the BOC increased interest rates again. The BOC has a delicate balancing act. One consideration is controlling excesses inflation and that is done by increasing interest rates. The second consideration is to try not to put the brakes on […]
Bridging Finance Failure Highlights the Importance of Diversification
The lesson to be learned about the risk of losing money is the importance of diversification, writes Peter Watson. Bridging Finance Inc was a well-known business that raised money from private investors and lent that money to companies. It has been in receivership since 2021. During the good times, Bridging managed $2 billion for 26,000 […]