Four reasons you should definitely try investing in the Canadian market in 2018

The Canadian stock market has been through a rough start this year. At the moment, the top five banking stocks of the nation are down by 4% to 5%. Experts say that the losses are significantly high when we compare them to a 52-week high. There is an increase in the volatility levels in the stock market, and this has given rise to a bearish situation that makes it harder for investors to hold it out. At the same time, the market experts assure the local and foreign investors that it will be the Canadian bank stocks that will pioneer the recovery.

Canadian bank stocks are still going strong

The Canadian banks have enough stability to ride out the dip in the market. These investments have higher chances of generating dividends at regular intervals. Most of these companies have their balance sheets in place that can add stability to a trader’s portfolio. One of the leading reasons for the stability is the practice of these banks to distribute about 50% of their dividends and expand them. Bank of Nova Scotia and CIBC currently have their annual profit of around 4%. These are presently your best opportunities for investment in the Canadian stock market once you learn how to buy stocks online.

The Canadian dollar is still strong

Yes, there is some volatility in the market, and it is more than it was yesterday. However, volatility works in two ways. It poses a threat to the investors since the value of the dollar might fall, but it also gives you the chance to make some sweet money when the value goes up. One of the most recent examples is the Singaporean dollar. When the cost fell to 2.5 ringgits against one Singaporean dollar, the investors in Singapore experienced a significant setback. The Singaporean dollar is now worth over 3.1 ringgit. That shows how the volatility in the market has two faces and the Canadian dollar is expected to show similar trends in 2019-20.

Adding diversity to your trading portfolio

Price volatility depends on a nation’s political scenario, management of natural resources and foreign business ties. There is a multitude of factors that contribute to the status of an equity market, and Canada is no exception. While the Chinese government and the Singaporean share market have served as terrible examples in 2015 and 1998 respectively, market experts see the Canadian stock market as an opportunity of the US-based investors to add diversity to their portfolio.

Experience faster growth

All foreign stocks provide a quicker growth opportunity to the investors. Diversifying a trading portfolio reduces the risk and volatility an individual trader faces. It is an excellent opportunity for investors coming from countries facing a stock market downfall. Investing in a foreign economy can help you stay afloat even when your national currency takes a plunge due to international politics or threats.

Most importantly, foreign stocks give you the chance to explore high-quality picks. There are hundreds of inter-listed Canadian companies in the US market. Any investor from the latter country can choose to invest in Canadian company shares and purchase stocks without bearing a hefty tax burden.

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A Few Real Estate Investment Myths Debunked

Investing in real estate can bring you high returns on your investment provided you know how to go about it. For you to be able to do it right, you need to be armed with the right information. As you do your research and ask around, you are bound to get a lot of information, but not all of it will be factual. Going into real estate with the wrong information can cost you dearly. This is why you need to seek help from reputable real estate investors such as those working in the companies owned by Phill Grove. They can provide you with all the information you need in order to make good investment decisions. This article debunks some common myths about real estate investment.

1. Real estate investment is a quick and easy way to make money

While it is true that real estate is easy to understand even for beginners, it is not a quick and easy way to make money. You need to put in the work, especially if you are making all the investment decisions on your own without the help of a real estate investment expert. You need to learn about the market and everything involved in the transactions. You also need to understand the legal aspects in order to be able to do it right. If you keep doing it consistently, you will soon break even and eventually start making profits. There are no shortcuts; you just need to be patient. Making impulsive decisions might also not work well for you. This is why you need to have an investment strategy right from the start.

2. You need a license to invest in real estate

This statement could not be any further from the truth. You do not need a license for you to be able to invest in real estate. Absolutely anyone can invest in real estate. It is a real estate agent who is required to have a license. Therefore, if you plan to involve a real estate agent, make sure that he/she is licensed. Otherwise, you do not need a license to invest in real estate.

3. You need a lot of money to invest in real estate

Many people wrongly assume that real estate investment is the preserve of the wealthy. However, this is not true at all. While this may have been the case a couple of decades back, it is now possible for anyone to invest in real estate with whatever little money they have. This is because you can invest through a real estate investment company, which can pool your money with other investors’ money and therefore give you access to investment opportunities that you would otherwise be unable to take advantage of.

4.The best place to buy property is close to your home

While starting out, you can focus on properties that are within your geographical location because you probably understand the local real estate market better. However, you should also be open to investing in properties in other cities and states because they might have higher potential for profits. Additionally, you need to diversify your real estate investment portfolio. Investing only in properties in the same geographical location can cause you to make big losses if the local real estate market is adversely affected by a certain event, such as political turmoil or a natural calamity.

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