Every day we hear on the radio or see on the television or print media reasons to make emotional decisions with our money. Every day there are reasons for any asset class to go up OR down. Every day there is new information that will affect us in a positive or negative way. The variables that can affect investments are never the same as there are hundreds if not thousands of such variables.
You can justify almost any imprudent investment decision with “facts.” Information is filtered by our emotions to create “facts” that support our decisions or beliefs. Without outside guidance, it is impossible to tell when and how this happens. Truth in the field of investing is elusive. It may not be lies but rather that no one knows what will happen next. You may find someone who makes a correct “prediction” however there is no evidence that this same person or institution will be right going forward.
To truly succeed in investing for the long term, you must own
- Own equities and high quality fixed income.
- Globally diversify.
- Rebalance.
Your emotions will continue to guide many of your investment decisions. The media along with the Wall Street bullies will continue to use fear and hype to keep your money moving. They will continue to put a spin on any event that will strike fear and incite greed.
How many times have you heard ‘if this happens then this will happen’? Well just because it happens once has nothing to do with future results. As I mentioned earlier there are hundreds if not thousands of variables that must perfectly align for events to perfectly repeat. This very seldom is the case.
Don’t forget the media and the Wall Street bullies have access to you 24 hours per day seven days per week through the expansive media networks.
If you want to invest with less anxiety and do not enjoy watching all the daily newsfeeds. You need to find and follow the guidance of an investor coach/fiduciary adviser. Also keep in mind that hiding your money in your mattress is not a very good solution.
