Articles

In the first part of this series, we explored existing research which showed how the equity allocation of the average U.S. investor has historically proven to be the single greatest predictor of future U.S. stock market returns (see the March/April 2024 edition of Canadian MoneySaver). We hypothesized that this metric, when applied to Canada instead of the U.S., also could be highly predictive of future Canadian stock market returns.

The decision to start investing in the stock market can trigger many questions and even feelings of fear for prospective investors with minimal experience. Investing in the stock market is important whether it is in the context of saving for a large purchase or general retirement planning and time is one of the biggest factors impacting returns.

As you prepare for back-to-school season, you’ll likely notice the costs associated with returning to the classroom this year have increased. Until recently, inflation was at a forty-year high in Canada, impacting the costs of consumables like rent, food and books, as well as big-ticket items like tuition. And while the rate at which prices are rising has stabilized, the already-inflated costs are here to stay.

If hearing the names Frosted Flakes, PEP, and Almond Joy elicits a glow of nostalgia, congratulations, you’re a Boomer! As the Boomers and Gen Xers shuffle into retirement, they’re not just getting misty-eyed over sugary breakfast cereals, they’re also feeling nostalgia for a bi-weekly paycheque. That’s been replaced by a lump of savings to be chipped away and that’s a whole different ball game.