Financial worries can cause mental health problems
In my opinion, one of the main causes of mental health issues is financial. For many, financial strength, or weakness, impacts most of our life. When your financial stability declines or you perceive that it will, this can have a ricochet effect on other aspects of your life. Will you be able to pay for […]
Successful Investing starts with asset allocation
Asset allocation is the most important decision for investors, writes Peter Watson. Stocks have a higher expected rate of return than bonds. They also have a higher amount of uncertainty and volatility. Bonds have a lower expected rate of return. They are less volatile and the risk of losing money is far less than owning […]
Is COVID-19 tax coming?
The almighty dollar could be used as an encouragement for those unvaccinated against COVID-19 to get their shots. At the beginning of the pandemic, it would have been unimaginable to think finance could be used as a strategy to control the spread of the pandemic. Last week, the Québec Premier announced the unvaccinated would face […]
Why you need to be optimistic when investing
Personal investing is influenced by how you think, writes Peter Watson. Are you pessimistic or optimistic? If you are pessimistic about the future, you likely would not want to invest in the stock market. As we all know the stock market has no guarantee of future results. Some years you lose. The recent pandemic provides […]
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 […]
Investing Can Be Simple: Do What Works
Picking the best mutual fund is a difficult task, writes Peter Watson. You would hope for two things: The mutual fund would stay in business, and the fund will outperform its benchmark. In 2001 there were 2,900 US-based equity mutual funds. Twenty years later only 41 per cent of those funds were still in existence. […]
Tax Avoidance Hurts Us All
It is unfair that most Canadians pay their fair share of taxes while some of the rich and famous do not, writes Peter Watson. The world has just had another glimpse of how the privileged have avoided taxes. This round of tax avoidance has been named the Pandora Papers. The International Consortium of Investigative Journalists […]
Investing and Sports Both Include Competition
Let’s compare investing with sports. In both cases you want to win. It gets more complicated when you consider investing. For every stock trade there is a buyer and seller. The buyer wants a low price, the seller a high price. In stock trading terminology there is a bid and ask. Then the two parties […]
Understanding Inflation is Important to Investing Success
Should investors worry they may receive poor stock market returns if inflation rates rise? Historically, that has not been the case. Assume the stock market gained 10 per cent during a year that inflation was three per cent. The first three per cent of return is needed to account for inflation. An investor needs to […]
Investing – Measure Twice and Cut Once
An Investment Policy Statement helps reduce common mistakes investors make, writes Peter Watson. People make mistakes. That can be costly. There is a popular expression used when doing carpentry work. Measure twice and cut once. This is just another way of saying be careful not to make a mistake. Making a mistake with your investments […]