Up until a few years ago I prescribed to the general notion that it is important to make an effort stay current with the financial headlines. At a certain point, my opinion shifted. It shifted because what I increasingly saw were opinion pieces presented as news stories. This is especially true in the realm of finance that focuses on investing and personal finance.
Investing opinions not only can damage your mental state, they can also damage your portfolio. What you need to ask yourself is if any of these news stories are actually helping become a better investor, or if they’re helping you to develop into the human form of a chicken running around with its head cut off.
Your ability not to be thrown off by the myriad of news headlines is no small matter. The sad truth is most of the stories and their accompanying headlines are developed to catch your attention, just as tabloids at the grocery checkout line are designed. The only difference is subject matter.
Forget the headlines. Develop a strategy and stick to it. As you progress you will refine what you’re doing. Part of the strategy needs to consist of not allowing headline to drive your investment decisions. You can’t succeed as an investor if you’re being told one minute that the market is going to triple in the next ten years, and then a minute later reading that the market is on the verge of a massive correction.
Remember, the financial press needs a news story. They need readers. They need to captivate you. The more eyes, the more ad revenue. The better the bottom line. Capturing your interest does not equate to providing sound financial guidance.
In short…Develop an investing strategy that works for you. Identify financial sources that help you make good decisions. Stay away from financial sources and stories that make your emotions swing high or low.