Stock market declines can result in panic selling
In 11 out of the last 15 recessions, the value of the US stock market fully recovered in two years. In all 15 recessions the market eventually recovered every time, writes Peter Watson. Losing money in the stock market can drive some investors away from owning stocks altogether. There are two problems. First, you see […]
Are you Making an RRSP Mistake?
Many Canadians squander some of the benefits of making an RRSP contribution, writes Peter Watson. Many Canadians fail to take advantage of income tax rebates resulting from RRSP contributions. That rebate could be included in your long-term financial plan and used to finance other investments as opposed to treating it like “free money” and spent […]
Protecting your investments before a stock market crash
Address this before a stock market crash, not after, writes Peter Watson Protecting your assets is the key to investment success. Perhaps consider diversifying your portfolio with more than one asset class and security type to mitigate downside risk exposure during times of market volatility. A popular question after severe stock market crashes is how […]
Ontario does not support banning DSC fees
The momentum to change the way mutual funds are purchased hit an unexpected roadblock. Ontario Finance Minister Vic Fedeli recently announced that the new conservative government did not agree with reforms proposed by the Canadian Securities Administrators (CSA). The CSA is the umbrella group for all provincial securities commissions. Six years ago, they started an […]
Investors 65 years and older need better protection
In response to the needs and priorities of aging Ontario investors, the Ontario Securities Commission (OSC) released a report in March titled Seniors Strategy. The OSC defines a senior as 65 or older. In the next 23 years the number of seniors in Ontario will increase to 25 per cent of the population. With age […]
There is an increasing appetite and expectation for transparency
There is an increasing appetite for transparency. People are more curious than ever. This has had implications for you on how your investments are handled. The expectation of the modern-day investor is to better understand the details of investing. Humans have always been curious. As a society, we are used to finding out what we […]
Embedded commissions debate continues as changes loom
Do you fully understand how you pay for investment advice? If you are like many people, the answer is probably no. Changes are coming on how financial advisors are paid. Details of these changes are not known but investment industry participants have been debating this important topic for many years. What we do know is […]
Protections proposed for self-directed investors
There are positive signs the investment industry will evolve to better protect investors who purchase financial products and advice. In May 2017, the Investment Fund Institute of Canada (IFIC) recommended investment industry regulators provide rules governing embedded advisory fees charged by mutual funds. The issue is that some mutual funds sold by online discount brokers […]
Ontario provincial government moves to protect investors
Last week the Ontario government announced it is going to do more to protect investors from the financial services industry. Great announcement, however we have had similar announcements in the past that have done little to help the individual investor. Finance Minister Charles Sousa said new legislation will be introduced to provide industry regulators the […]
A heart to heart talk about the cost of receiving investment advice
For decades, the true cost of advice has been a “dirty little secret”. Many investors were not aware of what they were paying for financial advice. In my opinion, that was by design. For those of you who have read previous columns, my views are clear. Industry participants including investment advisors, mutual fund companies, and […]