An Investment World Full of Headlines by Chris Cushman
TV, Internet, and newspapers are filled with bad news. Horrific headlines scream at us everywhere we turn. How can we invest in a world constantly falling apart?? Here are some tips to remember:
1. With today’s 3 second attention spans, the press must use bad news to attract viewers. There remains millions of great stories we never see.
2. Many dreadful events are tragic, but they don’t always affect people’s investments. A terrorist attack in Europe doesn't greatly change how many groceries are sold in an Atlanta store and a conflict in the Middle East will not greatly change the value of a local house you’re renting.
3. Many companies make money in spite of challenges in the world. Companies still sell products during wars, inflation, and recession. Companies sell products every year in spite of government decisions. Certainly challenges exist and business cycles happen, but consumers will always need goods and services.
4. As evidenced by Covid-19, there is always the possibility of monumental event (War, Tsunami, 10.0 Earthquake). Understand what events are probably vs. unlikely vs. remote. No investment is completely without risk.
5. Understand how you react to news. Is your intake of headlines required? Healthy? Does it affect your level of joy and contentment?
Investments are merely a tool to help you accomplish a goal. After you chart a plan and pick tools to help you navigate your desired path, how do you maximize joy along the way, and how can we help? Give us a call!