Tuning Out the Noise is Hard

(Source: businessinsider.com 8/16/2023) 

This is a screenshot from businessinsider.com taken last month, but the date doesn’t really matter nor does the publication. You could go to any financial news site on any given day and the headlines will look similar.   

• Real estate and stock prices and risk of crashing.   

• Recession only delayed.   

• How to invest in turbulent market.

• Warning signs are flashing. 

And to let you know they aren’t just making things up, the article will cite people with official sounding titles such as, “Economist”, “Market Guru”, “Top Strategist”, “Legendary Investor”, or “Market Vet.”  

Of course, the majority of actual experts would tell you that none of these headlines matter and you should stick with whatever long-term plan you and your advisor have put in place, but that would admittedly be a pretty boring article.  (Which is why I’m writing this one instead!) 

The financial media want you to believe that they are looking out for your best interests. They are not.  In fact, financial media exist for the sole purpose of selling advertising. Their advertising revenues are inextricably linked to clicks. And clicks are a function of the extent to which they can trap readers in a vicious cycle of fear and regret. In one sentence: financial media exist to help investors fail. 

The less of it you consume (my weekly blog posts/emails being the exception) the better off you will be.