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By Jennifer Rideout, Wealth Advisor, Assante<\/em><\/strong><\/p>\n\n\n\n Nowadays, it\u2019s pretty much impossible to avoid talk of the markets. There are 24\/7 cable channels devoted to investing and business, newspaper articles and internet coverage. The wall-to-wall talk long ago reached the point of oversaturation.<\/p>\n\n\n\n As investment advisors, we look on the financial media somewhat skeptically. On the one hand, there are thoughtful, informed voices in the media worth listening to. More often than not, however, we\u2019d say the business press can be harmful to an investor\u2019s long-term goals.<\/p>\n\n\n\n Why? Let us count the reasons\u2026<\/p>\n\n\n\n 1. Financial News is Filled with Predictions<\/strong>: try picking up the business section of a major newspaper and going through the headlines. Chances are that you\u2019ll encounter all sorts of confident predictions, be they are from columnists, economists or analysts. You will probably read about the outlook for currencies, commodities, and the stock market as a whole, among other things. Why is this bad for investors? Simply put, there is nothing to say these predictions will come true. And investors who follow the guidance of these supposed gurus can easily be led astray. <\/p>\n\n\n\n 2.<\/strong> The Media is Obsessed with Cause and Effect<\/strong>: every day, there are countless articles trying to explain all the movements in the markets. It\u2019s understandable: the media feels like it has to print something, so it attempts to give a \u2018why\u2019 for many of the \u2018whats\u2019. For instance, we often see headlines like, \u201cStocks Slump on North Korean Tensions\u201d, or (the next day, maybe), \u201cStocks Surge as North Korean Tensions Ease\u201d. Is this important information for the average long-term investor? Not at all. We would even go further, and say that sometimes, figuring out the \u2018why\u2019 is all but impossible. Just like the media\u2019s obsessions with predictions, the attempts to link cause and effect can distract an investor from their objectives. Better to keep your eyes straight ahead on your goals rather than become fixated on day to day market movements.<\/p>\n\n\n\n 3. Financial Journalism is Sensationalistic<\/strong>: Related to #1, the media loves stories about disaster. There\u2019s a saying in general news that, \u201cIf it bleeds, it leads\u201d (i.e. gets top billing). We would argue the same is true with investing stories. Imagine there are two articles. The first is titled \u201cStock Market Could Crash\u201d. The second is headlined \u201cAdvisors Recommend Diversified Portfolio\u201d. Which one do you think will make the front page? Clearly, it\u2019s the one about the possible crash, even though we would strongly argue that the other article is far more important for most investors. <\/p>\n\n\n\n Information vs. Entertainment<\/strong><\/p>\n\n\n\n Truth be told, there\u2019s nothing particularly harmful about investing news in and of itself. So, if you just enjoy following the markets, that\u2019s perfectly fine. Where the media becomes a problem for an investor\u2019s portfolio is if it causes negative behavioural patterns to sink in. If you find that tuning in is causing you to focus too much on the short term and lose sight of your long-term plan, it might be time to tune out. <\/p>\n\n\n\n Jennifer Rideout<\/p>\n\n\n\n Wealth Advisor<\/p>\n\n\n\n Assante Capital Management Ltd.<\/p>\n\n\n\n Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see a professional advisor for individual financial advice based on your personal circumstances.<\/em><\/p>\n\n\n\n [adrotate banner=”126″]<\/p>\n","protected":false},"excerpt":{"rendered":" [adrotate banner=”126″] By Jennifer Rideout, Wealth Advisor, Assante Nowadays, it\u2019s pretty much impossible to avoid talk of the markets. There are 24\/7 cable channels devoted to investing and business, newspaper articles and internet coverage. The wall-to-wall talk long ago reached the point of oversaturation. As investment advisors, we look on the financial media somewhat skeptically. 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