Dollar Cost Averaging: A Strategy to Consider
When is the best time to invest? The problem is it is impossible to accurately predict how stock prices will fluctuate during the short term. Dollar cost averaging is a technique where you invest the same amount of money on a regular basis over time. For example, you could invest monthly and the most likely […]
Full-Service Investment Firms Can Be Challenged at Providing Comprehensive Advice
Financial advisors face challenges in delivering the services they offer, writes Peter Watson. Individual financial advisors and the firms where they are employed proudly communicate their service as “holistic advice.” That makes sense because certain things in life, including your personal finances, should be done thoroughly. However, from a theoretical perspective, nothing is always perfect. […]
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 […]
Interest Rate Increase Will Hurt Many Canadians
Interest rate hikes will be painful for many Canadians, writes Peter Watson. The Bank of Canada made an aggressive move to increase interest rates. That increase will impact many individuals. The underlying story is just how serious the risk of inflation is to the Canadian economy and that such extreme measures have been taken. Three […]
Lessons Learned from Golf That Apply to Investing
Golf and investing can show that sometimes you just get lucky, writes Peter Watson. Golf has a lot to do with luck. Luck happens in golf, and it also happens with investing. Several years ago, I played in a business golf event. We had a long time to hit as many practice balls. I attempted […]
Large Tech Stocks Underperform
The tech giants that posted phenomenal stock market gains over the last decade have now suddenly come crashing back to reality. The companies often referred to as “FAANG” Include Facebook (now called Meta), Amazon, Apple, Netflix and Google (now called Alphabet). For the 10 years ending in 2021 the FAANGs annual return was 28 per […]
Seniors Face Many Financial Challenges
Financial challenges facing seniors include inflation, increasing medical costs and longevity, writes Peter Watson. Interest rates have been extremely low for years and that has hurt investment returns from Income bearing investments like Guaranteed Investment Certificates. Many seniors rely on this type of investment. The result of this extended period of low investment returns means […]
Millennials Prefer Financial Advisors More Than Robos
A study found that the number of Millennials that had an advisor was 40 per cent while those using automated financial services only accounted for seven per cent. The study was done by Natixis Investment Managers. I suspect the results that heavily favoured a financial advisor was because it surveyed those with at least US$100,000 […]
Better Investment Fees Disclosure is Proposed
Investors can look forward to enhanced disclosure of investment fees and costs on the mutual funds and ETFs they own, writes Peter Watson. This is a good thing, and it is a follow-up to cost disclosure requirements that were implemented in 2016. The new standard of disclosure is at the proposal stage and the objective […]
Managing Expectations and Important Aspect of Investing
Most investment categories had disappointing returns during the first quarter of this year. First a few details. We looked at seven different sectors. Four different stock markets, a global real estate index and two bond indexes. Six of the categories had declining values in the range of five to eight per cent for the quarter […]