It never ceases to amaze me how a single headline can affect the financial markets. Perception is often reality in this context, and perception often changes quickly as a story unfolds. In today’s world, every news outlet races to be the first one to report a story. These stories may not have had time to fully develop, and their accuracy may not be 100% initially. Most media corporations operate on a 24-hour news cycle and many do not hesitate to insert their own political bias into their stories. With so much information coming from all these different directions, it can be difficult to determine the truth.
How many times have you turned on the news, only to change to a different station and hear the same story with a different narrative? It seems like any positive news gets drowned out by a constant feed of doom and gloom. Your emotions can easily influence your decisions and perception when facing this barrage of information. Interpreting the financial markets can be even more difficult, as short-term traders and computer algorithms transact based on the content and numbers of news headlines. This can lead to wild and unpredictable swings in the market. But the important question is, how do you handle it?
Contact us today at Good Life Financial Advisors of West Virginia to learn more about the media’s impact on the markets!
Making financial decisions can prove difficult when you are looking through a clouded lens. That’s why it is important to know your goals and your risk tolerance. You will need to determine how the events in question impact your goals. Do you need to recalibrate and head in a different direction? How has your current portfolio performed? Which markets and sectors should be affected and which ones should not? Making a 100% accurate prediction on what will happen is next to impossible, as I am yet to find an owner of a crystal ball. Together, we can put these puzzle pieces together to ensure your strategy remains intact and make the necessary changes to keep you on target and within your risk tolerance.
At Good Life Financial Advisors of West Virginia, your goals are our target. Contact us today!