Normal economic cycles can hurt the individual
Economic activity in Canada ebbs and flows, writes Peter Watson. We have prosperity, then things slow down and we can have a recession. Then a recovery. The goal of the Bank of Canada is to manage our economy, provide slow and steady growth and hopefully allow us all to prosper. That’s good for the country, […]
Rising Interest Rates Ahead
The Bank of Canada continues to sound the alarm that higher interest rates are just around the corner. There are two significant reasons why. One. Inflation, as measured by the consumer price index had an annual increase of 4.8 per cent in December. This is the highest level in three decades. The target inflation rate […]
New Year’s Resolution: Is it Time for a Career Change?
Rethink your current career to see if you should make a change, writes Peter Watson. Financial success starts with your ability to earn an income. Your employment is not just a job, it is your current livelihood and your future financial security. It makes perfect sense to periodically evaluate your working life. Consider making this […]
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 […]
Failed CMHC Policy Could Not Control Rising House Prices
Canadian house prices continue to rise and are increasingly unaffordable, writes Peter Watson. Canada Mortgage and Housing Corp. failed at its attempt to slow the increase of house prices. This could affect homeowners and prospective homeowners. Last year CMHC increased the financial requirements to qualify for mortgage insurance. Mortgage insurance is required for buyers who […]
Investment Predictions Often Do Not Come True
Using predictions to make investment decisions can lead to disappointing outcomes, writes Peter Watson. Making investment predictions can be dangerous. A rhetorical question. Looking back to last year in March, would an investor liked to have predicted the pandemic was coming? With the knowledge of a pending COVID-19 crises, most investors would have sold all […]
Monthly Payments can be a Financial Sink Hole
Accumulating too many monthly payment plans can sabotage your financial well-being, writes Peter Wastson. Things you purchase are often priced in a manner that is too good to resist. That is a significant financial risk. Buying a car is a perfect example. Assume you are in the market and find a car you like, and […]
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 […]
Covid-19 Could Change Your Life for the Better
Bad news sometimes turns out to be good news, writes Peter Watson. For many, the Covid-19 pandemic will change your life in ways you could not have imagined. Sometimes change can have a negative impact, but it can also lead to positive results. This article will focus on the positive. Some will be able to […]