Investing and Sports Both Include Competition
Let’s compare investing with sports. In both cases you want to win. It gets more complicated when you consider investing. For every stock trade there is a buyer and seller. The buyer wants a low price, the seller a high price. In stock trading terminology there is a bid and ask. Then the two parties […]
Understanding Inflation is Important to Investing Success
Should investors worry they may receive poor stock market returns if inflation rates rise? Historically, that has not been the case. Assume the stock market gained 10 per cent during a year that inflation was three per cent. The first three per cent of return is needed to account for inflation. An investor needs to […]
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 […]
Failed CMHC Policy Could Not Control Rising House Prices
Canadian house prices continue to rise and are increasingly unaffordable, writes Peter Watson. Canada Mortgage and Housing Corp. failed at its attempt to slow the increase of house prices. This could affect homeowners and prospective homeowners. Last year CMHC increased the financial requirements to qualify for mortgage insurance. Mortgage insurance is required for buyers who […]
Investment Predictions Often Do Not Come True
Using predictions to make investment decisions can lead to disappointing outcomes, writes Peter Watson. Making investment predictions can be dangerous. A rhetorical question. Looking back to last year in March, would an investor liked to have predicted the pandemic was coming? With the knowledge of a pending COVID-19 crises, most investors would have sold all […]
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 […]
Stocks and Bonds: What to Expect
Let’s talk investments. Specifically, how the volatility of stocks and the returns of stocks are related. Many investors dislike volatility. A stock can be worth $10 a share, increase to $15, decreased to $8, and then back up to $11. Most would prefer a $10 a share price to increase gradually to $11. Perfect. A […]
COVID-19 Chaos Disconnected from Stock Market Performance
This year has been the most confusing time that many investors have experienced during their lifetime, writes Peter Watson. S&P 500 Index performance in 2020 seems disconnected to the damaging impact COVID-19 has had on the economy. Early in the year COVID-19 spread around the globe, accelerating change in many areas of the world economy. […]
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 […]
Covid-19 Could Change Your Life for the Better
Bad news sometimes turns out to be good news, writes Peter Watson. For many, the Covid-19 pandemic will change your life in ways you could not have imagined. Sometimes change can have a negative impact, but it can also lead to positive results. This article will focus on the positive. Some will be able to […]
