Weekend Reading – The stock market is easy to beat

Weekend Reading – The stock market is easy to beat

Hey Everyone,

Welcome to a fresh Weekend Reading…wondering if the stock market is easy to beat!?

Before that, some recent reads and reminders…

We posted our latest income update, part of our journey towards financial independence:

September 2023 Dividend Income Update

Canadians seem to be doing a lot of things right…including filling up that TFSA (Tax Free Savings Account):

Weekend Reading – TFSA contributions up and RRSP contributions down

Weekend Reading – The stock market is easy to beat

Is the stock market really easy to beat?

Heck no.

Let’s unpack. 

My inspiration for this week’s theme came from this recent Globe and Mail (subscription) headline:

My name is Mark Seed - the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I'm looking to start semi-retirement soon, sooner than most. Find out how, what I did, and what you can learn to tailor your own financial independence path. Join the newsletter read by thousands each day, always FREE.

8 Responses to "Weekend Reading – The stock market is easy to beat"

  1. You titled this “the stock market is easy to beat”. Then you say “heck no”. But when you look at the chart you provide it looks like it’s not that hard for some investors to beat the indexes. (at least in this country)
    In Canada we have some very safe stocks to invest in, banks, utilities, and telcos, that pay consistent dividends. The BTSX has surely beat all those indexes over a long period of time. Our own dividend portfolio still has an average of 11.8% gain over the last 20 years. Including these last two loosing years. So not that hard if you stick to your plan. For now.
    All equity is still working for us.

    1. Ya, I think the S&P 500 is hard to beat consistently. I’ve always felt that way.
      When it comes to Beating the TSX, there are approaches IMO to meet or exceed the TSX returns over time.

      An average gain of nearly 12% over the last 20 years is outstanding. 🙂

  2. Hello Mark. Thank you for your post and thoughts on “beating” the market. In the current market condition with rising interest rates and stubborn inflation, shares in many interest sensitive stocks- like banks, telcos,and utilities- have experienced considerable price drops. In the short term, this could be a worry for some folks. But, dividends continue to be paid, and some even grow, so income focused investors in quality stocks held for the long term will have surely managed well. This is a buying / adding opportunity ; note the current yield average on the ” Beat The TSX” selected stocks of 7.35% ( although, I would not consider AQN) To me, this is an opportunity to improve the yield and /or the quality of a dividend focused portfolio ( with some capital gain potential). Always be careful and perform thorough due diligence before making an investment. There are risks. Take care Mike

    1. I totally agree Mark. While valuations are down a fair bit for many of the quality blue-chip dividend growth stocks you mention, their isn’t much to worry about unless one needs to sell them in the near-term. The dividends in many cases are at or near historical highs making it a great time to add more to ones portfolio. This will boost income (short and long-term) and provide more capital upside potential which will be come once central bankers begin reducing interest rates. Of course, due diligence is important in selecting blue-chip dividend growth stocks to avoid those with unacceptable risk of cutting dividends.

      1. Indeed, Paul. Prices are down a bundle but I don’t intend to change my plan!

        Will be interesting to see what the rest of the year holds!?

        Thanks for reading and sharing your thoughts.

    2. For sure….for now… “dividends continue to be paid, and some even grow, so income focused investors in quality stocks held for the long term will have surely managed well.”

      That is my hope coming into 2024, time to buy more over the coming months whether that is individual stocks or low-cost ETFs.

      Take good care back!

  3. “Canadians seem to be doing a lot of things right…including filling up that TFSA (Tax Free Savings Account)”
    Me thinks that some of that has to do with demographics. The TFSA started in 2009 so the boomer generation had a lot of RRSP monies in the bank so to say and less time to max out the TFSA.. Hard to break old habits as well. Just keep on keeping on with the RRSP. Now the TFSA is much better known and also workplace pensions are not as prevalent. Many will take the company RSP to obtain the company contribution and max out their TFSA.
    Both my sons are unionized and with the union pension I have several times mentioned to them to max out the TFSA and then see what contributory balance is left in the RRSP after the union portion. Much different optics now a days.
    I had only the company RSP option and my own RRSP contribution for the majority of my working life.
    Even then, at the beginning, I left management with the bank who obviously put the monies in to their own mutuals funds.
    Now my losses and gains are my own.


    1. That could be true, lots of Boomers and GenX should realize the tremendous wealth-building power that is the TFSA.

      There is something to be said to be in control over your own investing decisions.

      I hope all is well,


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