Facts Versus Fiction in Investing

Dec 21, 2022 | Blog, Investing

“An investment in knowledge pays the best interest.” — Benjamin Franklin

In almost every aspect of life, the more informed and knowledgeable you are, the better you can make smart decisions. So, is watching financial news like a hawk the best tactic? Or would it lead to dangerous actions rather than informed decisions? What’s the best path to achieve financial success?

How Helpful Is the Media Before Investing?

The news is filled with market experts who love to talk about stock market performance and why all signs indicate future success or failure. In fact, sometimes they’ll roll up their sleeves and yell at you about it. Quite simply, there is no way to predict an investment’s future performance with certainty. Following media predictions to buy or sell stocks might seem appealing, but investors would be far better served by sticking to their long-term investing goals.

While eye-catching headlines and bold predictions might win ratings and audience numbers, they don’t provide smart investment advice. Being an armchair expert is one thing, but accurately predicting the future is a completely different story.

Interesting Investment Facts and Fiction

Markets suddenly become volatile

Unlike what the 24-hour news cycle might have you believe, markets don’t suddenly become volatile since they’re always volatile. That’s just the way they behave. And while we don’t like volatility when it leads the market downward, it can still be (and very often is) choppy even as it climbs up. We must remember this when we start to see any drop in the market.

We have to do well for ourselves

It might sound selfish, but it’s a matter of capacity: it’s overwhelming to take in the enormity of need in our society today, and one person cannot fix all the world’s problems. But if you pick a few causes close to your heart and support them with your time and money, you will make a real difference. You will make the lives of others better and improve your own life at the same time.

We must beat other investors

Investing isn’t about beating others at their game, but about controlling yourself at your own game.

So, What Are the Most Effective Investment Strategies?

Strategies that are firmly grounded in robust academic research and utilize a data-driven approach that is based on the science and math of the markets. Additionally, take your financial goals and needs into account, and use a rational approach to plan for the long run.

This article was originally posted on Medium.

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