This month’s client’s corner focuses on financial news and the negative journalism bias.
Staying informed is important but placing too much weight on financial news and long-term forecasts can often leave investors misinformed and lead to poor decisions. As long-term money managers, we train our clients to see past the noise of the financial media and focus on their long-term goals without sweating the bumps along the road.
Negative financial news sells. Often referred to as the “bad news bias”, the simple fact is that human psychology drives people to have strong emotional reactions to negative headlines. News outlets know this and try to exploit this gap in human psychology because it ultimately results in more clicks and more revenue.
Financial markets are resilient. They have crashed, recovered, and reached new high’s time and time again. Don’t get sucked into the endless stream of doom and gloom headlines. Stick with your plan, look past the noise, segment your investments into buckets, and utilize dollar-cost averaging, and over the long run you’ll come out on top.
We hope you enjoyed this month’s Client’s Corner. Please do not hesitate to reach out if you have any questions or feedback.
Thinking about hiring a professional to help you implement a long-term financial strategy? We would be more than happy to set up a 30-minute discovery call to get a better understanding of your unique situation.
Read The Full Commentary
If you do not have access to our monthly email, you can request it here:
Your privacy is fully protected. By filling out this form to request this month’s commentary, you give explicit permission for LT Wealth Management Partners to email you to deliver our e-newsletter. It is important to note that your consent acknowledges agreeing to receive our newsletter knowing that your name and email may be stored on external servers outside of Canada.
