War and the Effect on Stock Markets
When Russia invaded Ukraine there was disbelief, sorrow, and anger. From a financial perspective, how will this affect my investment portfolio? We can learn a lot about the stock market from past observations. That does not allow us to predict the future, but it can provide a perspective. Here is what is known. One. Over […]
Normal economic cycles can hurt the individual
Economic activity in Canada ebbs and flows, writes Peter Watson. We have prosperity, then things slow down and we can have a recession. Then a recovery. The goal of the Bank of Canada is to manage our economy, provide slow and steady growth and hopefully allow us all to prosper. That’s good for the country, […]
Rising Interest Rates Ahead
The Bank of Canada continues to sound the alarm that higher interest rates are just around the corner. There are two significant reasons why. One. Inflation, as measured by the consumer price index had an annual increase of 4.8 per cent in December. This is the highest level in three decades. The target inflation rate […]
Financial worries can cause mental health problems
In my opinion, one of the main causes of mental health issues is financial. For many, financial strength, or weakness, impacts most of our life. When your financial stability declines or you perceive that it will, this can have a ricochet effect on other aspects of your life. Will you be able to pay for […]
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 […]
Why You Need a Tax-Free Savings Account
Canadians are required to pay income tax on income earned. This includes salary, interest income, dividend income and capital gains. If funds are invested in a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund, investment income earned within the plan is not taxed. However, all funds withdrawn from either plan are added […]
Why you need to be optimistic when investing
Personal investing is influenced by how you think, writes Peter Watson. Are you pessimistic or optimistic? If you are pessimistic about the future, you likely would not want to invest in the stock market. As we all know the stock market has no guarantee of future results. Some years you lose. The recent pandemic provides […]
New Year’s Resolution: Is it Time for a Career Change?
Rethink your current career to see if you should make a change, writes Peter Watson. Financial success starts with your ability to earn an income. Your employment is not just a job, it is your current livelihood and your future financial security. It makes perfect sense to periodically evaluate your working life. Consider making this […]
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 […]
Are you afraid of losing all your investments
Fear of losing money is a real challenge for investors, writes Peter Watson. There is a strong element of fear when it comes to investing. If your entire portfolio is invested in one or two stocks, then the risk of losing most or all of your money should be a significant concern. Many investors today […]