Happy spring at last, I hope? March sure has made up for an uneventful February here in the northeast.
On to this quarter’s thoughts we go.
As a financial advisor in White Plains, every so often—depending on how the stock market is behaving—I get a few calls and a question that goes something like this:
“Is there something you think we should be doing right now given what’s happening in the market?”
Invariably my friends are nervous about something they have heard reported from the mass media and are now wary of what the future has in store. The “something we should be doing” is really code for “Should we be selling our stocks?”
My response goes like this: “Paying too much attention to the media can be very dangerous! The media knows what attracts ears and eyeballs and it’s usually a message containing a heavy dose of either fear or greed, depending on the current climate. Furthermore, the omnipresent stock market ticker at the bottom of the TV screen reflecting each and every movement of the Dow is pure insanity and should come with a warning from the Surgeon General of Personal Finance that states ‘Fixating can be very dangerous to your health.’” And then I’ll wrap up my response by answering the question with a direct “No, I suggest we keep doing exactly what we’re doing no matter what new drivel the latest TV talking heads are spewing.”
So, as a White Plains financial advisor, that is the “What” part of my response but far important part is the “Why.” I know my friends with the questions are temporarily unnerved as to the current status of financial markets. I seize on this as an opportunity to reinforce the idea that the particular style of investing we practice greatly emphasizes the importance of the human behavioral side of investing as opposed to the fundamentally flawed “get in get out strategic and tactical style” that the mass media finds so alluring. I guess if an “investor”—gambler really—is grossly overweighed in a particular stock that is making huge negative headlines, concern would be warranted. But when invested in the mutual funds we use, that largely mirror the long-term performance of global stock markets, unless the news is that the world is ceasing to rotate on its axis (Wait a minute - hasn’t Nike just launched a massive and a little bit odd advertising campaign with just that theme? 😉), we need not be particularly concerned.
Kidding aside, in addition to investing in a fashion that is designed to maximize our likelihood of long-term success, we should cherish the stress relief that comes with not having to be concerned with the incessant financial market chatter and blather that our ever-increasing cable and satellite channel lineups so predictably and reliably deliver. You can’t miss out on this great benefit. It’s far too important for your financial and psychological well-being! As quarterback Aaron Rogers once said to sky-is-falling Green Bay Packers fans after a couple of tough early losses, “R-E-L-A-X.”
Be well everyone.
