Media Scare and Your Investing Strategy

Whether in a bear market or a bull market, media coverage tends to be negative, but don't let the media scare you into abandoning a sound long-term investment strategy.

It never ceases to amaze me how negative the media tends to be. Most reports in bull markets continue to question when the next correction will come, and in bear markets I see reports of how bad it could get and how there is more doom and gloom on the way.

Do not let the media scare you into abandoning a sound long-term investment strategy. Members of the media often have little or no training or education in finance. They often do not hold any licenses or registrations for our industry, which allows them to write with an unbalanced, sensationalistic bias or no accountability.

Whenever I read an article or watch a show on personal finance, I am reminded of one of my favorite quotes by Warren Buffett:

“Managers thinking about accounting issues should never forget one of Abraham Lincoln’s favorite riddles: ‘How many legs does a dog have if you call its tail a leg. The answer is four because calling a tail a leg doesn’t make it a leg.’”

Although this pertains to cooking the books at a corporate level, it has direct application to the media as well.

I’ll provide you with a simple message that can help you work toward your retirement goals much more effectively than market timing or any quick stock tip you would try.

In a time where the market is/was at all-time highs and is flirting with all sorts of fluctuation pertaining to interest rates, quantitative easing, unemployment reports, etc., I felt it was a good time to give a simple but important reminder:

A good strategy when assembled … is still probably a good strategy if your goals haven’t changed. Nothing in the short term should change a long-term goal in the long term. And remember … a good way to look at your portfolio in gain/loss is in ownership of shares and not the short-term stock price when in the accumulation stage.

Investments will fluctuate and when redeemed may be worth more or less than when originally invested.

Jon C. Ylinen is a Financial Advisor with North Star Resource Group and offers securities and investment advisory services through CRI Securities, LLC. and Securian Financial Services, Inc., Members FINRA/SIPC. CRI Securities, LLC. is affiliated with Securian Financial Services, Inc. and North Star Resource Group. North Star Resource group is not affiliated with Securian Financial Services, Inc. but is independently owned and operated. The answers provided are general in nature and are not intended to be specific recommendations. Please consult a financial professional for specific advice in relation to your individual circumstances. This should not be considered as tax, specific loan repayment for an individual or legal advice. 686653/ DOFU 6-2013