If It Bleeds It Leads!!

Watching the NFL, as many of us do.  Go Pack Go!! There is continued attention to the players “protests”. The media has been focused on the “protesters”.  Not on the people who continue to support the U.S.. Like all of us when we see an accident we have to look.

When I personally see an accident, I am looking but also focused on traffic.

The nightly news, daily stock market shows, and cable news focus on variability to get your attention.  They bombard you with the equivalent of “noise”. Short-run data and statistics that are useless.

Keep in mind, with regards to the media. “If it bleeds it leads.”

Paying attention to the short-term market fluctuations and newspaper headlines will completely disintegrate your peace of mind and ultimately your portfolio.

The reason many prefer investing in real estate is there are no noticeable short-term fluctuations in price.  You cannot look up the value of your real estate property on a daily basis. You treat it like a long-term investment, which it is.

In reality, real estate prices are correlated or just as volatile as small cap value stocks, over the long-term.

Unfortunately, for investors, we live in a digital world. Information is readily available. You can look up the value of your stock portfolio at any time during the day.  This ability only adds to our daily anxiety and stress levels.

The stock market should be treated much like real estate, by ignoring short term volatility and the daily news reports.

By following a prudent process and strategy with your investments you will succeed in the long run. Stop trying to control something you cannot control.

To succeed in investing for the long run you must own equities….globally diversify…..rebalance.

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