Tough financial decisions ahead
COVID-19: Canada responds with financial support, writes Peter Watson. When Canada suddenly found itself in the COVID-19 crisis I was extremely impressed with the government’s quick response to support Canadian businesses and workers. Prime Minister Trudeau, from the very beginning, was offering support and was handing out money by the truckloads. To me that was […]
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 […]
Seven Steps to Building an Evidence Based Investment Strategy
Use what is known about investing to your benefit, writes Peter Watson Evidence-based investing uses research and what is known about investing to the benefit of individual investors. The evidence applies to solid investment principals and human behaviour that greatly impacts individuals decision-making ability. This column will provide seven solid principles of how to best […]
Stocks Plunge and Investors Panic
Stock markets are volatile, writes Peter Watson. Speculating and attempting to predict short-term stock price changes historically has not been a successful strategy for investors. As we have recently seen, stock market values can shoot up and plunge down from day to day. These volatile swings also happen within the days that stocks are traded. […]
Pay yourself first- a sound principle
Sometimes in the wonderful world of finance, a simple concept seems to resonate. Pay yourself first is a sound financial principle particularly in our age of never-ending expenses. Consider the saving patterns of a young family. Financial challenges include mortgage payments or rent, household living expenses, the cost of an automobile, and commuting to work. […]
When investing, you need to do the math
The first rule of investing is to do the math. Put simply, when you save your money and make investments, what you’re doing is constructing a simple puzzle. Each part of the puzzle fits together. The same is true for your long-term saving and investing efforts. Everything should fit together to achieve your financial objectives. […]
The future of wealth management
Wealth management will change and evolve in the coming decades, influencing how you receive financial advice. Future change will happen in part because the profile of investment clients will change. A 2014 Credit Suisse survey estimated half of the world’s population was under 30 years old. This group will shape the future. They will earn […]
Why is it so difficult for people to save?
Why do so many people have so much trouble saving? This applies to both high and average earners. The data on how many of us have so little ability to save is alarming. According to a recent survey by GoBankingRates in the United States, people with an income in excess of US $150,000 have trouble […]
