Investing your money

Market and Economy Expectations for 2021

The investment professionals here at Watermark Stone Wealth recently attended the 15th annual iA Private Wealth Year Ahead Investment Conference held on January 18, 2021. The virtual event brought top investment minds together to provide market and economy expectations for 2021.

Differing viewpoints of more than 15 industry experts were shared, including:

  • Clément Gignac, First VP, Diversified Funds & Chief Economist at iA Investment Management Inc.
  • Philip Petursson, CIS & Head of Capital Markets Research at Manulife Investment Management

Here are some highlights and key takeaways from two experts at the event.


Watermark Stone WealthMarket and Economy Expectations for 2021

Better times may lie ahead for 2021

The turning of a new year is synonymous with optimism and hope. After a difficult year, it may feel as though optimism is in short supply. Yet, here are some reasons why better times may lie ahead for 2021.

Economic Rebound

While the cooler months have brought a resurgence of the virus and new shutdowns, we shouldn’t overlook the potential for an economic rebound in 2021. After the spring shutdowns, Canada’s economy performed better than expected as things reopened. Employment rebounded faster than anticipated, as did consumer spending. This was in part due to significant stimulus measures. Canada’s stimulus deficit is likely to be the largest globally in 2020, yet with interest rates at near-zero levels the cost of carrying this debt remains historically low.1


Watermark Stone WealthBetter times may lie ahead for 2021

COVID-19 and Your Investments

You cannot turn on the media without hearing news of the Coronavirus. World markets have seen quite a bit of movement as fears of the virus spread. While we can’t specifically say when this volatility will end, we can tell you that the Watermark team excels at navigating clients through market turbulence. So, we’ve compiled 5 tips to help you steer through COVID-19 and your investments.


Watermark Stone WealthCOVID-19 and Your Investments

Break these 10 bad investing habits

Bad investment habits can hurt us financially, so we’ve come up with a list of 10 bad money habits we think are worth noting. Hopefully you don’t see yourself in any of them, but if you do, maybe you’ll think twice next time and recognize these in yourself. I think in time we can all break these 10 bad investing habits for better investment results.

Reaching for returns

A risk discussion is one of the most important conversations to have with your advisor, both when you first open your account, and when you experience significant life events.
Investors get into trouble when they go outside of their comfort zone. Investments that provide remarkable positive returns in rising markets can also have great dips in falling markets. When markets are rising, you can feel like a genius, but when markets take a tumble, the losses can send you on an emotional roller coaster. This often causes investors to panic and sell into a dropping market – not ideal for long-term investing.


Watermark Stone WealthBreak these 10 bad investing habits

Home Country Bias

Pull out one of your investment statements. Do you hold only Canadian investments? If so, you may be suffering from Home Country Bias. While picking investments can cause paralysis by analysis, taking a global approach and tracking multiple asset groups can help both preserve and grow your money.

The world can be a demanding place with countless decisions that need to be made on a daily basis. Most of us don’t have free time to spend sitting in front of computers looking at bar charts, pouring over historical market research and deciphering economic reports. Putting together the perfect investment account can be difficult given the endless investment choices available in the marketplace. It’s enough to make one suffer from paralysis by analysis.

What is Home Country Bias?

In order to simplify the situation some of us decide to own only companies we know well, companies headquartered in the country in which we live. This is called Home Country Bias. However, cheering for the home team in your RRSP may not be your best bet.

Our friends at Franklin Templeton have created a video that walks you through why backing your country in your investment account, might not be your best bet.


Watermark Stone WealthHome Country Bias

Put your savings on repeat

Ok, be honest. Were you one of those people scrambling for savings in order to meet the RRSP deadline?

Are your RRSP savings habits like a bad thriller movie? You move funds from this account to that, trying to come up with that bold number haunting you from the bottom of your Notice of Assessment – RRSP deduction limit.

You say to yourself, if I just move this here, and move that there, then it will all be in my bank account by Feb 28th. Then I have to make a bill payment to HollisWealth, gosh, they’ve changed their name so many times, where was that payee name that they sent me? Oh, I’ll just email the Watermark team, they’ll know. Why have they not responded to my email? It’s been 5 minutes already!!! Okay, I heard back.

Now I just have to put the kids to bed and unload the dishwasher and then I can do the bill payment to my RRSP. Except I forgot and went to bed without doing it! Now it’s March 1st and oh gosh, hopefully if I do it today it will still count…

Sound familiar? Maybe it’s time you take the drama out of your RRSP contribution and put your savings on repeat.


Watermark Stone WealthPut your savings on repeat

Are you suffering from Loss Aversion?

The investment industry likes to talk about risk in terms of holdings in your investment account.

They talk about whether you have enough country diversification and diversification of types of investments, whether your time horizon is long enough for your risk level, and whether your investments will keep up with inflation. While these factors are important to creating an effective portfolio, keeping your emotions under control is equally as important.


adminAre you suffering from Loss Aversion?

What does 2019 have in store for us?

The investment gurus here at Watermark Stone Wealth, Chuck Magyar and David Lyon, recently attended the 13th annual iA Securities Year Ahead Investment Conference in Toronto. It aims to provide advisors insight into what 2019 has in store for us. By showcasing the differing viewpoints of more than 20 industry experts it provided us with a better sense of what we should be expecting from financial markets in 2019.

We heard from an impressive group of individuals including iA Financial Group’s Chief Economist, Clément Gignac and Brian Belski, who is the Chief Investment Strategist at BMO Capital Markets. A number of prominent money managers lent their thoughts as well, including Peter Norman, one of Canada’s leading experts on the residential housing market.

Here are some of David & Chuck’s key takeaways of the day:


Watermark Stone WealthWhat does 2019 have in store for us?