• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Wealth Pilgrim

No Money Worries. No Matter What.

Neal Frankle featured in
  • Home
  • Life Insurance
  • Investing
    • Build Strong Investment Building Blocks To Avoid Going Broke In Retirement
    • Systematic Mutual Fund and ETF Investing
    • Stock Market Investing Guide
    • Choosing the Right Investment Brokerage Guide
    • How Bonds Work Guide
    • How Banks Really Work Guide
    • Annuities – What You Need To Know Before You Invest
    • A Beginners Guide To Buying Individual Stocks
    • Create A Pool Of Great Mutual Funds and ETFs To Pick From To Secure Your Retirement
    • ETF and Index Fund Investment Guide
  • Earn More
  • Banking
  • Retirement Planning
    • Retirement Guide
  • Ask Neal a Question
  • Reviews
    • Upgrade Personal Loans Review
    • Lending Club Review
    • Prosper Review
    • Ally Invest TradeKing Review
    • CIT Bank Review
    • LegalZoom Review
    • Lexington Law Review
    • Airbnb Host Review
    • Should You Drive For Uber?
  • Tax
  • Courses
    • Raise Your Credit Score So You Can Buy a House – Free Video Course

Do Headlines And News Help You Invest Better?

by Neal Frankle, CFP ®, The article represents the author's opinion. This post may contain affiliate links. Please read our disclosure for more info.

Probably not. At least not if you want to grow your money safely.

Take a look at the following headlines from March 2003:

  • US car sales in February fell 41% to a 9.1 million annual rate, Bloomberg
  • ADP reported that companies cut an estimated 697,000 workers in February. , Bloomberg
  • Report: 20% of Home Mortgages Were Underwater in December, WSJ
  • AIG still facing huge credit losses, Financial Times

These headlines were all published in the first week of March 2009. If you read news like that and based your investments on those reports, you’d probably run for the hills. Agreed? Well, if you did that, you’d be extremely sorry. Take a look at what the market did despite all the bad news:

investment news

As you can see the market rewarded investors just when it looked like the end of all things financial.  Of course this is just one example – but it’s an important one.  2008 – 2009 was an extreme situation.  But extreme situation are those most likely to push investors to their limits and that’s why they are so dangerous.

Am I suggesting you should ignore what’s happening in the investment world or that you should always invest when the headlines turn south? Not at all Mon Ami.

Headlines and news stories are important but not nearly as important as your overall investment approach. Personally, I follow the market and look for technical signs of strength or weakness and allow that data to inform my decisions. The news and headlines are not part of that equation. You may follow an approach like that or use another method.

Whatever system you rely on to make investments please don’t allow news stories and headlines to overpower and commandeer your investment strategy. This goes for good and bad news alike. Don’t allow your fear or your greed to take over the mother ship. If you do, chances are good your landing won’t be pretty.

Do you invest based on the news? How? And how has it worked out for you?

Tweet
Pin
Share1

Reader Interactions

User Generated Content (UGC) Disclosure: Please note that the opinions of the commenters are not necessarily the opinions of this site.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Are You Human? * Time limit is exhausted. Please reload CAPTCHA.

Primary Sidebar

Who is Neal Frankle

Neal Frankle

I'm a CERTIFIED FINANCIAL PLANNER™ Professional with more than 25 years of experience. I feel very blessed and hope to share my personal financial experience and professional wisdom with readers of WealthPilgrim.
Read More »

Stay Connected

Facebook Twitter YouTube RSS

More Categories

Career Development
College Funding
Credit Cards
Credit Score Fixes
Money and Marriage
Debt Relief
Estate Protection
Property Investment Loans
Small Business Strategies
Spend Less Money

Disclaimer

Wealth Pilgrim is not responsible for and does not endorse any advertising, products or resource available from advertisements on this website. Wealth Pilgrim receives compensation from Google for advertising space on this website, but does not control the advertising selection or content. Please do the appropriate research before participating in any third party offers. The information contained in WealthPilgrim.com is for general information or entertainment purposes only and does not constitute professional financial advice. Please contact an independent financial professional for advice regarding your specific situation. Wealth Pilgrim does not provide investment advisory services and is not a registered investment adviser. Neal may provide advisory services through Wealth Resources Group, a registered investment adviser. Wealth Pilgrim and Wealth Resources Group are affiliated companies. In accordance with FTC guidelines, we state that we have a financial relationship with some of the companies mentioned in this website. This may include receiving payments,access to free products and services for product and service reviews and giveaways. Any references to third party products, rates, or websites are subject to change without notice. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.


About · Contact · Disclaimer & Privacy policy

Copyright © Wealth Pilgrim 2022 All Rights Reserved