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Investing – A Time to be Brave

Investing – A Time to be Brave

October 21, 2022

Investing in the current climate can be challenging, writes Peter Watson.

The stock market has been volatile with many significant declines and bonds, that are meant to be a safe haven, have done poorly too.

Then there is that sacred asset that Canadians are so proud of: Homeownership. Rising home values over a prolonged period had convinced most that this was the safest investment possible. Not so.

Rising interest rate increase home mortgages interest payments and because many families borrow as much as they can to purchase a house, the reality of increased interest rates is something most homeowners fear.

Owning assets including stocks, bonds and real estate is fine when all goes well, but nowadays it seems nothing does.

Added to the doom and gloom is Russia’s invasion of Ukraine and the speculation that President Putin might escalate the war with the use of nuclear arms. China is sharing some of the headlines indicating a possible aggression towards Taiwan.

There have always been periods of extreme doom and gloom. If you base today on what has happened over the last century you will think we will see more optimistic times in the future.

Unfortunately for the world we live, all that is happening now has, in some form, happened in the past. Financial planners will encourage you not to get too optimistic when times are good, the advice now is not to get too pessimistic.

We encourage you to take a long-term perspective. This might be your turn to be brave.

Peter Watson is registered with Aligned Capital Partners Inc. (ACPI) to provide investment advice. Investment products are provided by ACPI. ACPI is a member of the Investment Industry Regulatory Organization of Canada. The opinions expressed are those of the author and not necessarily those of ACPI. Only investment-related products and services are offered through Watson Securities of ACPI. Peter Watson provides wealth management services through Watson Investments. He can be reached at www.watsoninvestments.com