The Investing for Beginners Podcast - Your Path to Financial Freedom Falling Knives & Hidden Gems: What Adobe Teaches About Risky Stocks
Sep 29, 2025
Listeners dive into the age-old debate of RRSP versus TFSA for investment strategies. The discussion on Adobe stock sparks curiosity about whether it's a hidden gem or a falling knife, with insights into market fears surrounding AI and business fundamentals. Key indicators of a deteriorating business are explored, offering crucial signs to watch for investors. The concept of cost of equity is demystified, revealing how interest rates and volatility impact investment decisions. It's a treasure trove of knowledge for anyone navigating the stock market!
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Don't Rush Account Conversions
- Avoid converting RRSP to TFSA without checking tax consequences and personal cost-benefit first.
- Prioritize learning your tax rules and only convert if the long-term benefit outweighs the immediate tax hit.
Always Take The Employer Match
- Take any employer match in your RRSP before deciding where to put new contributions.
- Then allocate remaining savings to the account type that fits your long-term tax expectations and goals.
AI Fears Drive Adobe's Discount
- Market fear about AI appears to be the main driver of Adobe's low valuation.
- The company hasn't strongly reassured investors about AI threats, which fuels the sell-off.
