year-end investing

Year-End Financial Housekeeping, Buffett Style

As we approach the final months of the year, why not derive inspiration from one of the greatest investors of our time? Here are a few quotes from renowned investment guru, Warren Buffett, throughout this article.  
Get ahead with your retirement savings
While a pandemic has consumed most of our attention for the past 10 months and for the foreseeable future, don’t let that dissuade you from continuing to build your portfolio for your goals. Have you maxed out your tax-advantaged accounts? Consider contributing to your Tax-Free […]

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A Closer Look at Market Performance: The Major Indices

Those of us who follow the markets on a regular basis have watched as the major indices have climbed from their lows in March of this year. What has driven this performance?
S&P/TSX Composite Index Performance

The S&P/TSX Composite Index has traditionally been dominated by the financial and resource sectors, both of which have been impacted by the pandemic. The financial sector has struggled with credit losses and the energy sector has been plagued by falling oil prices due to the […]

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After a Bear Market, what happens?

What Happens After a Bear Market?

We have encountered many new situations in response to COVID-19 — isolation, physical distancing, economic closures globally, and others — that have created uncertainties for the short term. Doomsayers cite these factors, and others, to suggest that this time is different and the current economic downturn will somehow last forever. However, economic cycles go up as well as down.
Equity markets are also cyclical. Bear markets happen from time to time. Yet, even in the worst situations, equity markets have […]

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Benefits of Dollar-cost averaging

Consider the Benefits of Dollar-Cost Averaging

As we have seen with recent equity market reactions, short-term price movements are often unpredictable and nobody can be certain when the next upturn will begin. Such turns can occur when the outlook is bleak and the natural inclination may be to sell, not buy. In hindsight, all down markets look like buying opportunities. But in the moment, it’s not always easy to commit money to an investment that has gone down in price, particularly in a bear market.
Those investors who […]

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Maintain a Balanced Portfolio

Maintaining Balance in Your Portfolio

How have you reacted to the markets of late? In uncertain times, it may be tempting to take a conservative approach to protect investments from the downside.
Selling all of your stocks and holding cash is one alternative, though not practical for many investors. The potential capital gains tax consequences may be one reason this would be unpalatable. But more importantly, equity markets are largely unpredictable and cyclical in nature. The risk of being out of stocks is, over the […]

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Increasing Rate of Change

The Increasing Rate of Change

It has been said, “there are decades where nothing seems to happen and then there are weeks where decades happen.” This spring was no exception. With the COVID-19 pandemic, we have experienced change that has occurred at unprecedented speeds, including physical distancing, home isolation, and the voluntary shut down of economies. This led to equally unprecedented reactions: oil futures prices falling to negative levels and rebounding, entire industries being shut down, and record unemployment levels.
Equity markets reacted in a […]

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Advisors act as risk managers

Our Role in Managing Risk

The exogenous event of COVID-19 has been an uncomfortable reminder that we are all vulnerable to unforeseen risks that can have unprecedented effects. As investors, we could try and avoid these terrible events, but for most of us, overly defensive tactics, such as not participating in the markets, wouldn’t help in achieving our goals over the longer term.
As the saying goes, perhaps “the correct lesson to learn from surprises is that the world is surprising.” Equity markets inherently come […]

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Common Investment mistakes

During Uncertain Times: Avoid These Investing Mistakes

Uncertain times often highlight the mistakes that investors can make with their portfolios. During buoyant markets, making money may not seem difficult. However, the reckoning often comes when markets turn down. Suddenly, mistakes can become glaringly apparent.
Here are some of the more common investing errors:
Overlooking Diversification
The concentration of assets in too few areas can be a common problem. Despite the broad-based market declines we have recently experienced, certain sectors have performed very differently. Some technology companies have outperformed as […]

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Magazine Headlines Deter Investors

Headlines Sell Magazines—But Do They Help You Invest?

If you followed your investing strategy based on the headlines of major news publications, you would not be blamed for never investing. News headlines can be overly negative because that is what sells.
As a former trader, we used to joke that you do the opposite of whatever is on the cover of the Economist. This is not to say that much of what is written is untrue, it is just lagging by weeks or months. The markets are forward-looking, […]

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“Time” Will Tell

I hope this finds you all well and safe.
We are going through an unprecedented health scare. That remains the only thing we think you should be totally focused on. Defence.
We are NOT going through an unprecedented time in capital markets. For me, writing on behalf of the Precision Wealth Management team, this is my third major pullback while being in an Advisory role. And like the images below demonstrate, we’ve seen how this movie ends in the investment environment. […]

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