Should Investing News Affect Your Decision-Making?

May 10, 2017 | Blog, Investing

When you tune to (or click on) any news outlet, you’ll eventually be barraged by investing news. Often, this news is chock full of tips and ideas on which investments will go up or down in the near-future.

If you’ve paid any attention to this advice, you’ve probably seen plenty of convincing opportunities to grow your wealth. After all, if the experts can accurately predict the future, it makes complete sense to follow their tips and line your pockets.

So, should investing news affect your decision-making?

If the experts in the news knew which way the markets were going to move, newspapers would be worth their weight in gold. Unfortunately, this often isn’t the case.

Take a look at the recent US presidential election, for instance. Politics aside, many investment experts proclaimed in the headlines that the US stock market would see devastating drops if Donald Trump won the election. As we now know, although there was some market noise, the major stock market benchmarks rose to new, all-time highs shortly after.

Although investing news might be convincing, the truth is that there is no way to predict market movements with complete accuracy. It’s also important to keep in mind that many of the “experts” in the media are concerned with ratings, and don’t have to hold any actual financial credentials. It can be akin to taking advice from a salesperson rather than a doctor.

How to tune out the noise

Often, investing news can distract you from your actual goals. If you’re aiming to grow your wealth for retirement, for example, making a concentrated short-term investment play can derail your goals if it fails.

That’s why best defense against all the media maudlin is a goals-based, long-term investment plan. By having clear financial goals, you’ll often see that the best course of action is inaction; by being patient, you can watch your wealth compound and grow. Perhaps even more importantly, you won’t experience a searing loss if all your wealth is tied up in one investment.

How an advisor can help you tune out the investing news

Don’t discount the value a trusted advisor can bring to the table when it comes to your long-term financial goals. At LexION Capital, we work hand-in-hand with our clients to craft bespoke investment portfolios to meet their unique financial needs and goals. As a client, you’ll benefit from an investment portfolio and advice that tunes out short-term noise in favor of long-term success. If you’d like to learn more, schedule a conversation with our fiduciary advisors today.

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