I have big qualms with financial news media. Let me get right into it. For one, they get you hooked by instilling fear in you and then trying to sell you reprieve. Their job is never to report facts because facts are boring as fuck, they are trying to get a reaction out of you by spinning the facts just right.
I wrote about this just a few posts ago but got some interesting feedback email. I wanted to expand more on the topic.
When it comes to financial news all the talking heads are idiots. Yea, pretty bold statement to make but that’s the fact. I’ve read the stuff that so many ‘experts’ have written and except for the smart ones who know how to be vague enough to never be wrong, the majority are consistently wrong in their predictions.
Nobody can predict the markets, nobody can predict major disasters. Sure, they can see them coming eventually because the financial industry is on loop play just like human civilization. History always repeats itself so if you predict a massive run in a certain market or you predict a huge downturn you will be right in either case, it’s inevitable.
There are so many financial news sources now and listening to them might make you seem wiser or perhaps you will have more insight into the current situation of the bond market but as a general investor you won’t have any information that will help you beat the market.
My advice to you is that unless you are someone who is in a position to capitalize on market changes due to your ass sitting on a lot of investable capital then stop listening to financial news. Even seasoned financial advisers and investors have their fears and biases and even they will be swayed at times (though usually temporarily) by such information.
There are those docs who have saved enough money in conservative investments that now they have excess capital sitting around. These docs can buy distressed businesses, invest in options and buy real estate in bottomed markets. They are timing the markets and that’s never an easy thing to do. The bottom is never visible until it’s part of history. But there are certain risks you can take once you have excess capital and with some good experience behind you, some luck and maybe good advice you could come out ahead.
When you free yourself from financial news your fears will diminish because there is nobody pretending to be an expert who is trying to make you doubt yourself.
I know what your question might be, then how do I stay abreast of what’s going on. Well, my point actually is exactly that… you don’t need to know it. Develop your investment strategy and stick with it. Most ups and downs will first start out as ‘disasters’ as painted by the news organizations and in hindsight all of them were nothing but blips.
Are you worried that you might not find out about something really crazy like the collapse of the entire banking system to the point of us having to go back to chickens and goats? Guess what, if something that crazy happens there is absolutely nothing you could do about it and when you go to fill up your gas you’ll know immediately what’s going as you see people exchanging farm animals.
But seriously, if you want to know certain facts then get it from your friends. Like, Anthony Bourdain committed suicide. Wait for the dust to settle. The majority of your friends will be glued to their Facebook and every other news source that’s out there, they will have kept up with every last bit of information. Their hearts will pound, their underwear soiled, and their armpits sweaty as they are going through the ups and downs of it all.
Pull yourself back and in the end all you’ll hear is “oh this company went out of business, wanna grab a beer?”