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 […]
The pandemic will continue to change how we work
It’s time to focus on your career, given the changes to employment as a result of the pandemic, writes Peter Watson. Work has changed as result of the pandemic. Change has occurred in sectors that seem logical, but changes are also happening in areas that were not directly affected. Restaurant employment has seen a mass […]
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 […]
Facebook Parent Company Shares Plunge in Value
Last Thursday, shares of Meta Platforms, which owns Facebook, plunged 26 per cent in value in just one day. Mark Zuckerberg lost US$29 billion. For the last few years FANG shares appreciated significantly. FANG is the acronym for Facebook, Amazon, Netflix and Google. When companies do extraordinarily well, many investors decide to hop on the […]
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 […]
Why You Need a Tax-Free Savings Account
Canadians are required to pay income tax on income earned. This includes salary, interest income, dividend income and capital gains. If funds are invested in a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund, investment income earned within the plan is not taxed. However, all funds withdrawn from either plan are added […]
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 […]