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Jul 30, 2020
3 min

Free-trading Apps –The Best Thing Ever or the Worst Thing Ever?

Free trading Apps, like Robin Hood in the US and Weathsimple Trade in Canada, have risen to popularity, especially with young investors who like the app-based approach and the fact that the sites do not charge commissions for stocks, options or cryptocurrency trading. They also offer new investors the chance to set up an account without having a lot of money to invest. After talking with some young investors, we are both happy to see these new investing options but also conce

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Smart Investing

Apr 5, 2020
2 min

What’s Happening to Oil Prices?

While the Covid-19 crisis has been affecting everything in the economy and the world, the oil price story has been interesting and devastating for oil producing companies and provinces across Canada. Essentially, the oil industry was on its knees with record lows in oil prices. The pandemic then kicked the industry in the face. The timing couldn’t have been worse. So, what happened to oil prices anyway? Essentially, Saudi Arabia, the world’s top exporter launched a price wa

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When do the markets hit bottom? What we can learn from previous market crashes?

Smart Investing

Mar 20, 2020
6 min

When do the markets hit bottom? What we can learn from previous market crashes?

The declines and volatility in the markets have been painful for anyone with a retirement plan or stock holdings and that means most adults in developed countries including Canada. What is on everyone’s mind right now is when do we hit bottom – how far will the declines go? If you’ve been reading our publications long enough, you know we are not going to try to predict market timing. Our main point has always been that it is impossible to accurately time markets, especially

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What we can learn from the 2008 Financial Crisis – 2020 Update

Smart Investing

Mar 6, 2020
8 min

What we can learn from the 2008 Financial Crisis – 2020 Update

Two years ago (February 2018), we published an article about the 2008 Financial crisis and the crash in the stock market that followed right after. With the markets down because of the Corona Virus, it is interesting to revisit this topic. I’ve included the full article below. In early 2018 we started to wonder when the markets would experience a correction and concluded that it would eventually come but it would be impossible to predict when. Our advice was to keep calm dur

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Will the Corona Virus make markets sick?

Smart Investing

Jan 29, 2020
2 min

Will the Corona Virus make markets sick?

Corona Virus is in the news lately and stock market declines are being blamed on reports of the virus spreading beyond China. North American Stocks Stumble Canada reports its first case of corona virus. For someone just starting to watch the markets, this might seem strange. Why would a flu virus impact the stock market? For context, let’s look at what happened the last time we experienced a global flu pandemic. That would be the H1N1 outbreak in 2009. In April, 2009 the v

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How do Canadian Elections affect the Market?

Smart Investing

Oct 31, 2019
1 min

How do Canadian Elections affect the Market?

I know we are late with this but the recent elections made us wonder the effect of the elections on the market. So, we did our homework so we can summarize things for you. There are a couple of academic studies that are summarized in an RBC article on the same topic. They conclude that the end of uncertainty positively affects the market. In other words, markets tend to rise in the weeks coming up to an election as uncertainty decreases. While we did see a modest rise in the

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Why do we care about currency fluctuations?

Smart Investing

Aug 13, 2019
2 min

Why do we care about currency fluctuations?

With all the recent press about China devaluing their currency, you might be wondering what all the fuss is about. In this case, it is mostly political. With Trump’s tariffs set to go into effect, China is looking to retaliate by devaluing their currency – thereby making their products cheaper. Here’s how the math goes. Before the latest devaluation, it cost about 6.9 Chinese Yuan for every US Dollar (USD). So, let’s say something was selling for 6.9 Yuan and an American co

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Pay off Debt or Invest? What should I do with the extra cash on hand?

Smart Investing

Mar 13, 2019
2 min

Pay off Debt or Invest? What should I do with the extra cash on hand?

You’ve come into a little money. Perhaps you received a bonus at work or a small inheritance. This is enough money where you get to decide what to do with it but not so much that you can do everything – you need to make a choice. Should you invest the money or pay down debt? Generally, the answer is to pay down debt but, as with all things financial, it depends on your specific circumstances. Let’s explore this a bit more and understand when it is actually better to invest

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Are Blind Monkeys Better Stock Pickers than Professionals?

Smart Investing

Feb 20, 2019
1 min

Are Blind Monkeys Better Stock Pickers than Professionals?

We’ve mentioned on our site and in some blogs that studies have shown that, on average, you’d do as well buying and selling stocks randomly than professionals do, with all their research and all their training. Therefore, many advocate putting your money in a low-fee Exchange Traded Fund (ETF) or Mutual Fund that closely tracks the S&P/TSX. Now we have a huge new study by the University of Chicago, Carnegie Mellon University, MIT and portfolio analytics firm Inalytics Ltd th

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Smart Investing

Feb 14, 2019
2 min

Stop! - Don't take those stock tips!

People love to give stock tips. You probably know of that one person who talks all day about the latest “hot stock”, often not even knowing what the company does. There are 3 types of stock tips – all are dangerous. #1 The Insider Tip Anyone who works at a public company and anyone who works with a public company (a supplier or a customer) gains inside information about how the public company is doing. Perhaps they learn about a new product offering. Maybe they learn about th

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Is there a January Effect? Should I buy into the Stock Market Now?

Smart Investing

Jan 2, 2019
2 min

Is there a January Effect? Should I buy into the Stock Market Now?

You might have heard about something called the January Effect – the expectation that markets rise in January. The explanation is usually that investors sell in December to get tax losses and then buy back in January. Or, that when the new year hits, new investing strategies are pursued, causing increases in the market. And in fact, it used to be true in the US. Once study that looked at data up to 1974 concluded that the average return for (US) stocks during the month of J

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Is the crash over yet? Why it is hard to time the market - Redux.

Smart Investing

Dec 28, 2018
2 min

Is the crash over yet? Why it is hard to time the market - Redux.

We published an article almost exactly one year ago when the TSX experienced a 1400 point plunge over a week. Well, now the TSX is down over 2500 points from its high and the markets are gyrating widely. So, we answer the question we asked one year ago - Is it over yet? Like a year ago it is easy to find pundits who predict that the worst is over and others who say that the worst is yet to come. The reality is that no one really knows. The market movements are based on thousa

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What is the Yield Curve? And What is Scary about an Inverted Yield Curve?

Smart Investing

Dec 13, 2018
2 min

What is the Yield Curve? And What is Scary about an Inverted Yield Curve?

People (and the market) reacted to what is called an inverted yield curve. So what is the yield curve and why do people worry when it becomes inverted? First, let’s explain the yield curve. This is simply a graph of how much it costs to borrow money versus the length of time you are taking the loan. As you might expect, as the length of time of the loan increases, the risk that it doesn’t pay back increases and therefore the interest rate that is required for someone to give

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Market Might be At the Peak – Should I Stick with My Investment Strategy?

Smart Investing

Oct 9, 2018
2 min

Market Might be At the Peak – Should I Stick with My Investment Strategy?

By now you’ve read or heard that the market might have peaked. You heard about rising interest rates, inflation fears, oil price volatility and more reasons why we might be in for a market correction – a 10% or more drop in the stock market. And, as of today (October 9, 2018) the S&P/TSX Index is 600 points off its peak that was reached just last month. So, what is a regular Canadian Investor to do if you had planned to make a investment in equities as part of your long term

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Buy it Like Buffet – Updated for a Strong Market

Smart Investing

Sep 24, 2018
2 min

Buy it Like Buffet – Updated for a Strong Market

In our previous installment of “Buy it Like Buffet”, we described what Warren Buffet does in the midst of a market downturn. In a recent interview, Buffet discussed his strategy in a rising market. Surprising for many, Buffet has the same strategy – buy quality companies and hold on to them. After decades of investing in which he’s made billions of dollars for himself and his investors, Buffet has been remarkably consistent in his strategy. Some key points are relevant in bot

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What we can learn from the 2008 Financial Crisis – For the Ordinary Investor.

US-Mexico Trade Deal – What It Means for Canada and NAFTA

Smart Investing

Aug 28, 2018
2 min

US-Mexico Trade Deal – What It Means for Canada and NAFTA

The markets have been closing in on record territory. The latest good news is an announcement of a revised US-Mexico Trade deal – effectively a revision of the North American Free Trade Agreement (NAFTA). In addition to updating some of the terms of the agreement to reflect the new digital economy, there are some significant concessions from Mexico from the automotive industry, shifting more production into the United States. Canada has been consciously absent from these neg

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Elon Musk Tweets to Take Tesla Private and Short Sellers get Creamed – What Happened? Part 2 - Shor

Smart Investing

Aug 13, 2018
3 min

Elon Musk Tweets to Take Tesla Private and Short Sellers get Creamed – What Happened? Part 2 - Shor

You might have heard that Elon Musk tweeted about taking Telsa Private. That caused the stock to rise as expected. You might have also heard that he had been upset with “short sellers” and was very happy that they lost a lot of money after his announcement. Here at Smart Invest Canada we try to take complicated financial concepts and explain them to the everyday investor. So, let’s use this news story to explain a couple of concepts – “taking a company private” and “short sel

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Elon Musk Tweets to Take Tesla Private and Short Sellers get Creamed – What Happened? Part 1 - Taki

Smart Investing

Aug 13, 2018
2 min

Elon Musk Tweets to Take Tesla Private and Short Sellers get Creamed – What Happened? Part 1 - Taki

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SMART INVESTING FOR CANADIANS

Free-trading Apps –The Best Thing Ever or the Worst Thing Ever?

What’s Happening to Oil Prices?

When do the markets hit bottom? What we can learn from previous market crashes?

What we can learn from the 2008 Financial Crisis – 2020 Update

Will the Corona Virus make markets sick?

How do Canadian Elections affect the Market?

Why do we care about currency fluctuations?

Pay off Debt or Invest? What should I do with the extra cash on hand?

Are Blind Monkeys Better Stock Pickers than Professionals?

Stop! - Don't take those stock tips!

Is there a January Effect? Should I buy into the Stock Market Now?

Is the crash over yet? Why it is hard to time the market - Redux.

What is the Yield Curve? And What is Scary about an Inverted Yield Curve?

Market Might be At the Peak – Should I Stick with My Investment Strategy?

Buy it Like Buffet – Updated for a Strong Market

What we can learn from the 2008 Financial Crisis – For the Ordinary Investor.

Starbucks Coffee or Starbucks Stock?

US-Mexico Trade Deal – What It Means for Canada and NAFTA

Elon Musk Tweets to Take Tesla Private and Short Sellers get Creamed – What Happened? Part 2 - Shor

Elon Musk Tweets to Take Tesla Private and Short Sellers get Creamed – What Happened? Part 1 - Taki