Financial despair can have a silver lining
Today a story of success that contains good news and bad, writes Peter Watson. Early in their career, as the story was told, there were two major setbacks. A loss of a job and real estate. The theme of the story was how negative events can have positive outcomes. The person telling me the story […]
Investors Will Benefit from New Investment Industry Rules
New legislation regulating the use of financial titles will reduce confusion in selecting an advisor, writes Peter Watson. Investor confusion on selecting a person to help you with your finances should be greatly reduced. Ontario will start to regulate who can use standard industry titles. The titles “Financial Planner” and “Financial Advisor” will now be […]
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, […]
Are you afraid of losing all your investments
Fear of losing money is a real challenge for investors, writes Peter Watson. There is a strong element of fear when it comes to investing. If your entire portfolio is invested in one or two stocks, then the risk of losing most or all of your money should be a significant concern. Many investors today […]
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 […]
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 […]
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 […]
Covid-19 Provides an Opportunity for Fraudsters to Steal
Canadians are trusting, and that makes us easy to steal from, writes Peter Watson. Earlier this year the Ontario Securities Commission (OSC) and the Royal Canadian Mounted Police issued a joint warning about fraudulent investment opportunities related to the coronavirus. Both organizations had heard that some Ontario investors have been offered investment products or services […]
Timing the Stock Market Can be Risky and Costly
Consider a long-term buy-and-hold strategy, writes Peter Watson S&P 500 data over 50 years shows the enormous cost of timing the market and missing out on the best days of stock performance. Long-term stock investing can be less risky with a buy-and-hold strategy. The trouble with timing the stock market, and selling to avoid an […]
Let’s talk about risk
In simple terms, risk is about the likelihood of something bad happening. Consider the risk on your house. You might have a fire that causes significant or total loss in the value of your house. That could be very expensive. If you have a mortgage, one of the conditions is that you are required to […]
