Pursuing a Better Investment Experience – Decision 9: Look Beyond the Headlines

Many investors are easily persuaded that successful investing requires constant attention to current events and frequent adjustment of their equity exposure. Daily market news and commentary can influence and challenge your investment discipline. Some messages stir anxiety about the future while others tempt you to chase the latest investment fad.  Without a strong investment philosophy to guide you, you also may follow the advice of friends, neighbors, or family, especially if the “insight” promises a fast, easy return. But growing wealth has no shortcuts. Success requires a solid investment approach, a long-term perspective, and discipline to stay the course.

Below is a video created by Dimensional Fund Advisors in 2008. The first six minutes of the video talk about the market conditions as of 2008, but if you fast forward to the six minute mark, you’ll see examples of how the media can influence people to make poor investment decisions.