Investing

What’s everyone doing or thinking in the investment world?

I’m relatively new in the stock market trading scene. I’ve only started 2 years ago, but I have a long time horizon (20-30yrs). With my limited knowledge I’ve tended to stay within the realm of safe investments (banks, telco’s, energy, etc.). I have yet to wade into the American market. I mainly focus on dividend stocks over growth stocks. I never thought I’d be one of those guys reading the financial news just for fun, but here I am. While I don’t know enough to know enough, I do find it amazing at how quick stocks rebounded after the onset of covid. People with pockets deeper than mine could have made out like bandits.

I wish I had the money a few years back to chase real estate investments, but that is a far off dream now. Many friends of mine took the plunge in real estate years ago. They sacrificed having fun and living to be able to manage their properties and now it’s paying off big time. I can’t see the trajectory in housing going on forever, and I think we are in need of a correction.

I’m not looking at striking it rich, I just want stability in my golden years. My FIL’s pension was great when he retired over 10 years ago, but now all he does is complain at how it’s value is eroded and doesn’t stretch as far.

My approach has been:

Get a good advisor and deal with a large established brokerage. I'm with RBC Dominion Security and moved with my advisor from BMO Nesbitt Burns. Work with him/her to find your risk tolerance.

Worry less about fees and more about returns.

Everyone who tells you how much money they've made because they do their own investing is either lucky or not telling you about their losses.

Ignore the business media. If the people writing in the newspaper were any good at predicting the markets they'd be working in the financial sector or rich and retired instead of slaving over a computer terminal for the ROB.

Ignore the media in general. When markets are good they will constantly tell you a correction is just around the corner. When markets are bad they will tell you that they will never be good again. Neither are accurate.

Don't worry about the daily market reports. It's a marathon not a sprint.

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Originally Posted by Badenoch

My approach has been:

... Ignore the business media. If the people writing in the newspaper were any good at predicting the markets they'd be working in the financial sector or rich and retired instead of slaving over a computer terminal for the ROB.

Ignore the media in general. When markets are good they will constantly tell you a correction is just around the corner. When markets are bad they will tell you that they will never be good again. Neither are accurate....

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^^^ That is sage advice right there! ^^^
I don't invest or play the stock market myself, because - like most people - I have never had the "extra" funds to play with. However, I have very good friends in the business, and two of them even talk on TV sometimes. They themselves tell me NOT to listen to what they say on TV, because the economy will often do whatever the economy does, regardless of what the talking heads predict on a daily basis!!!
Being a full-time realtor myself (since 2005), I can tell you that the same is true about real estate. Of course hindsight is always 20/20 and the real estate market has only gone up in the past 25 years.
My personal philosophy is that LUCK always has a role in most investment scenarios, be it buying a lottery ticket or throwing money on horse races, hockey pools, or gold & silver stocks, etc.
So, Good Luck! :)

When you say trading, please note there is a difference between day trading and investing. Day trading is buying and selling within a short time frame for the purposes of making a quick profit based on current events, investing is buying and holding for a longer period. I have met many wealthy investors, I have never met a wealthy day trader.

I suggest you start by setting up a regularly timed (weekly/monthly) transfer to your RSP account up to your allowable max of 18% of income (unless you have catch up room), your RSP is a tax deferral vehicle and you will 'earn' back the income tax on your contribution when your tax return is done.

Secondly, as said above, don't worry about daily market reports or the media, instead spend your time reading some books on investing, I learn something new every time I read one.

If you choose to day trade keep your activates confined to your RSP account as the capital gains tax consequences are not triggered until a withdrawal from your RSP account is made. Consider security of principle, it is more important to not loose than it is to gain.

The overnight lending rate has a large effect on some stock/bond prices, and also to a lesser degree on the real estate market, as such this will be your guiding light as to where to invest. The overnight lending rate is one of the governments tools to control inflation, the current rate is expected to increase over the balance of this year, all else being equal. As the cost of borrowing increases the result will be less capital purchases made by companies and henceforce lower growth, it is this lower growth that will drive down stock prices for companies with a high debt ratio. Meaning, for investors, this is a good time to create an investment plan and buy when the prices are low(er).

In regards to real estate, the prices will not drop until new home construction surpasses demand, the increase in the bank rates will not have much effect on prices due to the inherent growth in demographics of the population. However, when and if new home construction surpasses demand there may be some price correction.

Best investments for most folks is real estate period. Next is not getting into debt you cannot afford, credit card debt. Next money loser is buying anything new, that you could buy used especially cars.

Not being a savy money guy I let my work pension fund manage a portion of my savings as they are experts. I do not believe in playing the stock market as it appears to be a casino for rich folks.

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Originally Posted by Marker

When you say trading, please note there is a difference between day trading and investing. Day trading is buying and selling within a short time frame for the purposes of making a quick profit based on current events, investing is buying and holding for a longer period. I have met many wealthy investors, I have never met a wealthy day trader.

I suggest you start by setting up a regularly timed (weekly/monthly) transfer to your RSP account up to your allowable max of 18% of income (unless you have catch up room), your RSP is a tax deferral vehicle and you will 'earn' back the income tax on your contribution when your tax return is done.

Secondly, as said above, don't worry about daily market reports or the media, instead spend your time reading some books on investing, I learn something new every time I read one.

If you choose to day trade keep your activates confined to your RSP account as the capital gains tax consequences are not triggered until a withdrawal from your RSP account is made. Consider security of principle, it is more important to not loose than it is to gain.

The overnight lending rate has a large effect on some stock/bond prices, and also to a lesser degree on the real estate market, as such this will be your guiding light as to where to invest. The overnight lending rate is one of the governments tools to control inflation, the current rate is expected to increase over the balance of this year, all else being equal. As the cost of borrowing increases the result will be less capital purchases made by companies and henceforce lower growth, it is this lower growth that will drive down stock prices for companies with a high debt ratio. Meaning, for investors, this is a good time to create an investment plan and buy when the prices are low(er).

In regards to real estate, the prices will not drop until new home construction surpasses demand, the increase in the bank rates will not have much effect on prices due to the inherent growth in demographics of the population. However, when and if new home construction surpasses demand there may be some price correction.

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Thank you, I meant investing. I don’t have the time or know how to day trade.

I just opened my trading account a few months ago. But for the past 20 years I have average around 15% across the board with my mutual funds but the fees are high. I am hoping to do better then that.

Buy high sell low
Panic sell regularly to stimulate share price
Panic buy regularly to stimulate market crash
You know better how to lose money than any financial expert you consult
Avoid diversification

Stay tuned for more sage financial advice.

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Originally Posted by greatwhite

I just opened my trading account a few months ago. But for the past 20 years I have average around 15% across the board with my mutual funds but the fees are high. I am hoping to do better then that.

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15% is a very respectable return.

Also new to market world . We are more in the trading side we will put back into more longer term investments.

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