We like to think we are independent thinkers, but the truth is our thoughts, attention and energy are heavily influenced by what we read in the headlines.
• “Almost 40% of the market value created during the Trump rally is gone” Yahoo Finance 3/28/18
• “DOW plunges 1,175 – worst point decline in history” Money.com 2/5/18
How do those headlines make you feel? Do you say “so what!” or do you want to jump off a tall building? The goal of most headlines it to make you want to do something, right?
Always remember that the media exists to make a buck, and they need to sell ads to do that. In order to sell ads, they need our eyeballs. How do they get our eyeballs? They employ hyperbole, dire predictions and crazy quotations to get us to tune in and read on.
What if Yahoo Finance headline said: “Don’t worry, this is just normal”. What if Money.com headline said: “The stock market is on sale today? What if the Wall Street Journal headline said: “Stock won’t make you wealthy. Your behavior around stock makes you wealthy” (1). They wouldn’t get the eyeballs they need to make money.
Take Control
You can take greater control of your thoughts and attention by strategically tuning out the financial media. While interesting and attention grabbing, all of those headlines are detrimental to the long-term investor and to your long term financial success.
I think financial planning and thoughtful investing are totally COOL, but then, I’m weird that way. I sometimes wish it was sexier so more people would take the time to go beyond the headlines. Planning and investing are not about market timing. Planning and investing isn’t getting rich quickly. It’s about ignoring the hype and sometimes just “staying the course”. That’s why a financial advisor can be so valuable.
I welcome the opportunity to review the principles of sound investing and following your financial plan. Please call me at 612 436-3733 or email me at jgilles@financialplanpartners.com
(1) “Stocks won’t make you wealthy. Your behavior around stocks makes your wealthy” is a quote from Nick Murry’s book Simple Wealth, Inevitable Wealth.
The views stated in this post are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change with notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.