Bad Year for Bonds in 2022
There are a few fundamental guidelines we recommend people use when developing their investment portfolio, writes Peter Watson. It starts with diversification: a combination of stocks and bonds. Stocks usually have a higher expected rate of return that can help your portfolio grow. Bonds usually have a lower expected rate of return, but they provide […]
Lessons Learned from 2022 Disappointments
Investor disappointments from 2022 can be a guide to building your portfolio, writes Peter Watson. Five high-tech stocks that previously were considered the darlings of investing lost $2.8 trillion in the first 10 months of 2022, according to S&P Global. These companies are referred to as FAANG stocks. Facebook (Meta), Apple, Amazon, Netflix and Google […]
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 […]
Personal Finances are Challenged with Continued Increase in Inflation
The world of personal finance for many Canadians is spinning quickly these days, writes Peter Watson. Recently, the Bank of Canada made a significant increase in interest rates. The reason for the increase was its attempt to control inflation. After digesting higher interest rates, the attention shifted to the effect this will have on the […]
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 […]
Financial Planning More Difficult for Women
Financial planning for women must account for gender inequality, writes Peter Watson. Women face financial obstacles to being financially secure. In a perfect world there would be no difference to the financial challenge between men and women. That is not the case. Women are more often underpaid when compared to equally qualified men. Earning less […]
Do not judge an investment decision by the outcome
Having a successful investment outcome does not automatically mean you made a good decision. The natural flow to an investment conversation often starts with someone saying they made a decision to buy a specific investment. Happily, the investment appreciated in value. Their conclusion is, “I made a good decision”. Not necessarily. The dangerous part of […]
Languishing can be Damaging to Your Personal Finances
Languishing after COVID-19 could be harmful to earning an income. That can be detrimental to your ability to be financially self-sufficient, writes Peter Watson. Your financial success has a new potential obstacle to overcome. This obstacle was discussed in a New York Times article earlier this year on languishing. Early research suggests that languishing could […]
For those of you who like to pick stocks – you don’t need to read this
The cat-and-mouse game of picking individual stocks and trying to out-smart the market for your own financial gain is a strategy some investors enjoy. It can be fun however, it is not very profitable. Many individuals like to seize the moment, be proactive, and predict what stocks to buy and which ones to sell. To […]
2016 Presidential election in U.S. not an indicator of future
Hopefully Canadian investors have not made investment decisions based on the recent American presidential election. This article was written last weekend, prior to Tuesday’s (Nov. 8) election. My personal opinions given in this column are not a result of this week’s election, but based on previous U.S. presidential elections over past decades. Financial advisors and […]
