The Challenges of Another Interest Rate Hike
Many households will feel the pain of the most recent interest rate hike, writes Peter Watson. Plus, the cumulative effect of so many rate hikes over such a short period of time could be unmanageable. The Bank of Canada’s most recent increase to the cost of borrowing is one half of one per cent. That […]
Financial Pain is on The Way
Beware, the financial storm clouds are closing in, writes Peter Watson. That was the tone of a recent warning by Finance Minister Chrystia Freeland. Her conclusion was that many households are going to be adversely affected. Interest rates are being aggressively increased to try to control inflation. That will slow the economy, businesses will suffer, […]
Bank of Canada Increases Interest Rates Again
Managing personal finances just got more difficult, writes Peter Watson. Another significant interest rate hike was just announced by the Bank of Canada. The most recent rate increase was three quarters of one per cent. The Bank of Canada is determined to reduce the annual inflation rate to the target of two per cent. This […]
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 […]
When shopping for financial products, be your own advocate
The results of mystery shoppers provided Canada’s banks with mixed messages, according to Investment Executive. However, three out of every four shoppers had a positive experience. But shoppers had a negative experience with inappropriate product recommendations, confusing and misleading disclosures, sales pressure, and a lack of knowledge of the employee. Inappropriate product recommendations were experienced […]
Personal Finances are Challenged with Continued Increase in Inflation
The world of personal finance for many Canadians is spinning quickly these days, writes Peter Watson. Recently, the Bank of Canada made a significant increase in interest rates. The reason for the increase was its attempt to control inflation. After digesting higher interest rates, the attention shifted to the effect this will have on the […]
Significant Interest Rate Increases will be Painful
Last week the Bank of Canada increased interest rates by half a per cent. This is the largest interest rate hike in two decades, writes Peter Watson. Plus, there were warnings additional rate increases will be announced. The BOC also announced it will stop buying federal government bonds which it has been doing to keep […]
Mutual fund past performance data can be misleading
There is a bias in mutual fund past performance than can overstate past results, writes Peter Watson. Since mutual funds are the investment vehicle of choice for most Canadians, it is helpful to understand how to interpret information that is publicly available. We will follow the path of a very astute investor who wants to […]
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 […]
War and the Effect on Stock Markets
When Russia invaded Ukraine there was disbelief, sorrow, and anger. From a financial perspective, how will this affect my investment portfolio? We can learn a lot about the stock market from past observations. That does not allow us to predict the future, but it can provide a perspective. Here is what is known. One. Over […]