Marketwatch had a bad headline the other day. “Key Market Indicator Now Generating a sell signal.” The article goes on to describe an indicator that was created in the 1970s and is used to supposedly tell investors when to buy and sell. The indicator looks at companies that make up the index and creates a spread based on the companies who are reaching their highs along with companies reaching new lows. If the indicator sees that companies are moving to these highs and lows it can predict where the market is heading.
Not but two days later the same author came out with this
article, “Buy and hold strategy wins again.” Both articles were big type, front
section headliners and the content inside couldn’t be more polar opposite. (BTW
the author is Mark Hulbert)
If you are listening/reading the majority of investment news
you are making a poor decision. News companies are in one business, the get
viewers business or more specifically the entertainment business. Sure the
numbers are factual for stock prices and the like, but does Mark Hulbert have
your specific and best interest in mind? Of course not, no financial advisor
would have such a short term outlook, let alone flip strategies from sell, to
buy and hold.
The news will always be entertaining because that’s how they
make money, but in truth they don’t have your best interest in mind. Think
about your emotions related to your money, are you letting the news dictate
what you are feeling? If so, you need to stop listening to the news and start
listening to your advisor. Your advisor should know your specific situation and
can help you secure your financial future through financial planning.
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