Often when I meet a person at a party and they learn I am a financial advisor, they ask me if I can give them a good tip. My answer invariably is “Ignore the media!” This usually elicits some laughter, but I am not joking. The media, especially the financial media, can be quite detrimental to your financial plans.
The media is in business to make money. This applies to traditional media outlets such as newspapers, magazines, television, and radio. It also applies to newer media such as the internet and social media. To make money, these outlets sell ads (and often your personal data) and they need you to watch and listen. And how do they get your attention? By playing on your emotions, especially fear and greed. Content is often sensationalized, exaggerated, and can even be misleading.
Ignore the Financial Media
It can be very difficult to ignore the media since we live in a 24/7 media environment. But you can choose what information you allow into your mental space. To keep a proper perspective, ask yourself why are you tuning into the financial media. Is it to be informed? Informed of what? Too often the financial media is focused on quotes and predictions. If you are focused on the long-term health of your financial plans, quotes are merely short-term noise. And predictions are notoriously suspect. CXO Advisory did an interesting study looking at the accuracy of financial “experts” who provide market timing forecasts and predictions. In short, having a monkey flip a coin would likely get you better results than listening to these so-called gurus.
Listening to the media for financial advice moves you from long-term financial planning to the realm of speculation on short-term outcomes. I encourage you to ignore the noise and tune out this type of media that is designed to prey on your emotions. Working with a CERTIFIED FINANCIAL PLANNER™ can help you keep your focus and make choices that are in your long-term financial interests. And, tuning out the media has the added benefit of reducing stress in your life. We can all use a little more peace during these troubling times!
