Planning to save? 2 fall investment resolutions to mind

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Planning to save? 2 fall investment resolutions to mind

Fall investment tips
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Highlights 

  • Fall may be the time you think about some unexplored investment options
  • Investments done today can cushion you during unexpected financial shocks like the pandemic
  • The TSX Composite Index’s return is over 27 per cent on one-year basis

No time is a bad time to make a resolution to include more prudence and weed out impulsiveness from financial decisions. Fall has a special significance as it is this time of the year that trees shed old leaves, read old imprudent behavior.

2 fall investment resolutions to explore

First, keep track. Yes, keep track. Most of us don’t have an exact idea of our earnings and spending. This essentially means we have little understanding about our finances. For example, what was the share of earnings from artificial sources like federal government cash support during the pandemic and federal tax refunds?

The bank account may appear flush with cash but it is important to know which source of income is permanent, for example, wages, and what is temporary like government support.

Also read: Got $500? 5 best TSX stocks to buy in 2021

Second, read at least one page of any financial news daily or website on a daily basis. Investment is not a space for the uninformed. You may incur a high opportunity cost by not investing in the right investment instrument or stock. Reading gives a good idea. For example, if more and more companies are entering the EV space and the shift is being hailed, you may well conclude that related stocks can appreciate. Read at least one story every day.

Here's a quick outline of the S&P/TSX Renewable Energy and Clean Technology Index.

The index is composed of companies operating in green technology and sustainable energy. The focus of the world toward renewable energy in the wake of rising temperatures is favorable for related stocks.

At the time of writing, the Renewable Energy and Clean Technology Index’s one-year return was over 16 per cent. The YTD return is nearly -14 per cent.

S&P/TSX Composite Index performance

At the time of writing, the TSX Composite Index was at 20,463. It was in June 2021 that the index topped 20,000 for the first time ever.

TSX Composite Index 1-Year, YTD Return

The Composite Index’s one-year return is over 27 per cent. The year-to-date return is over 17 per cent. In the Canadian stock market, the index remains the most watched indicator by investors.

Also read: Top 8 TSX stocks that grew more than 300% in 3 years

Bottom line

Fall may be the right time to think about saving. Here, stock investment is an area that can be explored. To stay updated about latest happenings in the stock market, you may always read a reliable news source, at least the headlines of corporate and financial news.

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