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 […]
House Prices To Fall
Homeowners face the possibility of significant decrease in value of their house, writes Peter Watson. “Property values, already slipping, are likely to fall more than 10% in the coming year.” This quote is from a recent report from RBC Economics. Add this to other news on housing prices and the new reality is Canadians largest […]
Investors Lost Millions and Fraud Charges Laid
Investors lost millions and the lesson learned is a key to investing is diversification, writes Peter Watson. The RCMP opened an investigation in 2016 as a result of investor complaints about Fortress Real Developments. Two senior executives of that firm were charged with fraud. According to a news release by the RCMP, “Allegations were received […]
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 […]
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 […]
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 […]
Financial despair can have a silver lining
Today a story of success that contains good news and bad, writes Peter Watson. Early in their career, as the story was told, there were two major setbacks. A loss of a job and real estate. The theme of the story was how negative events can have positive outcomes. The person telling me the story […]
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 […]
Millennials Prefer Financial Advisors More Than Robos
A study found that the number of Millennials that had an advisor was 40 per cent while those using automated financial services only accounted for seven per cent. The study was done by Natixis Investment Managers. I suspect the results that heavily favoured a financial advisor was because it surveyed those with at least US$100,000 […]
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 […]