Entertainment Not Strategy
Stay informed… but stay disciplined
What This Means
Financial news has its place. It can help you stay informed about what’s happening in the markets and economy. I still watch it every day.
But realize that it’s built to keep you watching.
The problem is when investors allow the latest headline to change their investment plan.
One day the market is expected to rally. The next day it’s expected to crash. If you consume enough financial news, you’ll eventually hear every opinion imaginable.
After more than 20 years in this business, I’ve learned that successful investing isn’t about reacting to headlines. It’s about having a plan and sticking with it.
That’s because your long-term success has far more to do with consistency than predicting what the market will do next.
Watch financial news if you enjoy it. Just don’t confuse entertainment with strategy.
Common Questions
Should I just ignore financial news altogether?
No. Staying informed is valuable. The key is to realize that headlines and news change rapidly- your investing approach shouldn’t.
Why do financial “experts” have completely different opinions?
Because no one knows exactly what the market or economy will do. Different people can look at the exact same information and come to completely different conclusions.
The media also benefits from having opposing viewpoints. A debate between a bull and a bear makes for more interesting television—and keeps people watching.
That’s why it’s important to separate opinions from your investment strategy.
Remember This:
Stay informed, but stick to your plan.