Narcissistic Investment Managers Underperform
A narcissist investment manager thinks it’s all about them, tends to take big risks and has a lower risk adjusted returns than their peers. The truth is money management is all about the investors, the risk they take or avoid and their return on investment. It is not about the money manager and their personal […]
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 […]
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 […]
Significant Interest Rate Increases will be Painful
Last week the Bank of Canada increased interest rates by half a per cent. This is the largest interest rate hike in two decades, writes Peter Watson. Plus, there were warnings additional rate increases will be announced. The BOC also announced it will stop buying federal government bonds which it has been doing to keep […]
Federal budget attempts to balance many priorities
Canada is at a critical stage of our evolution. The federal budget highlighted some of the challenges we face as a nation, writes Peter Watson. The goal of a federal budget is to outline the income and expenses and how the government navigates between different priorities. I cannot remember a time where there have been […]
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 […]
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 […]
The Perfect Gift for Your Child in 2022
It’s a new year and why not give your children a gift they really deserve in 2022, writes Peter Watson. The gift: a mutual fund that invests in a broadly diversified portfolio of stocks around the world. Why is this important? It is not money, but rather the educational experience of owning an investment. The […]