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. […]
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 […]
Banks Push Back on Investor Protection Reform
Banks and regulators at odds on proposed reforms aimed at protecting investors, writes Peter Watson. New reforms designed to provide better protection of individual investors has hit a major speedbump. Starting at the end of 2021, financial advisors are required to have a better understanding of the investment products they sell. This includes understanding alternative […]
Mortgage debt is a financial risk
Excessive mortgage debt is a financial risk for many homeowners, writes Peter Watson. The nagging issue of excessive mortgage debt held by Canadians continues. There is new information that the risk of excess borrowing is getting worse. This has significant implications for homeowners that might get caught carrying too much debt. Also, there is considerable […]
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 […]
New Investor Regulations are an Upgrade
Pending investor regulations are designed to ensure investments purchased are suitable, writes Peter Watson. Investors will benefit from changes that will be implemented at the end of this year. The central focus of new regulations is meant to ensure that investment products being recommended to you are consistent with your investment objectives and risk profile. […]
The Toronto Maple Leafs disappointing season teaches us a lesson about diversification
Cheering for just one favourite team is fine. Owning just one investment and hoping for success is dangerous, writes Peter Watson. Our beloved Toronto Maple Leafs just taught us a lesson about diversification. Since the last time the Leafs won the Stanley Cup in 1967, fans have been hoping for another triumphant hockey season. The […]
Financial Planning will be taught in elementary schools
Ontario’s overhaul of math teaching will include financial literacy, writes Peter Watson. Young children will start learning financial planning at school. This is an excellent life skill and, in my opinion, an educational upgrade. One of the foundations an individual carries through life is a strong education. Reports over the years show a correlation to […]
Tough financial decisions ahead
COVID-19: Canada responds with financial support, writes Peter Watson. When Canada suddenly found itself in the COVID-19 crisis I was extremely impressed with the government’s quick response to support Canadian businesses and workers. Prime Minister Trudeau, from the very beginning, was offering support and was handing out money by the truckloads. To me that was […]
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 […]