The Sky Is Falling

What is the first thing that comes to mind when you think of “Noise”?  Maybe it’s the sound of the dog next door that barks all night long.  If you live in the city, it could be the sound of traffic or police/fire sirens.  If you’re not a kid person then it could the sound of kids playing at the playground.

Have you ever considered that the information we fill our brains with is noise?  Maybe we should.

Have you stopped to consider how that “Noise” can be a danger when it contains information that is not in our control? 

If you’ve listened to any of our podcasts, read any of our past Blogs, or have had the opportunity to speak with us in person, it’s no secret that we believe that much of that harmful “Noise” comes from the media.  Most of the time they present us with a “Chicken Little” outlook that concerns forecast and short-term market movements.  These are things that we can’t control and change daily if not by the hour.

Giving the “Noise” too much attention and focus can be harmful.  Those investors that are glued to the financial news and passionately follow the markets often experience more worry, sleeplessness and stress.  This “Noise” is mostly short-term and by taking a long-term view we can quiet the noise.

If we go back to 1926, the S&P 500 Index is only up 56% of the time when looked at daily.  Now if we extend our outlook, we see that the S&P 500 is positive 75% of the time in one-year periods and 95% over ten years.*

Ignoring the news headline “Noise” and short-term outcomes may be in your best interests.  Play the long game.  I’m can help you do that.

*Source. Dimensional Fund Advisors

The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. All indices are unmanaged and may not be invested into directly.