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 […]
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 […]
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 […]
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 […]
Residential Rentals Putting a Strain on Personal Finances
Increasing residential rental rates are getting too expensive for many Canadians, writes Peter Watson. The increasingly tight residential rental market could put a strain on individuals’ personal finance. When we think of real estate our focus tends to be on homeownership and escalating prices due to supply and demand realities. More people want to buy […]
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 […]
Employment Insurance logic needs to be fixed
Employment Insurance logic has to align its goals with the recipient, writes Peter Watson. Today a story. But first a common business principal. Anytime you have a business relationship it is to your advantage that all parties are hoping for the same outcome. For example, if you work for a company a bonus could be […]
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 […]
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 […]