Here’s a trivia question for you.
What did the stock market do on August 4, 1994?
Don’t know? Me either.
Over time, what happened to stocks on a given day is meaningless. Yet financial news is reported every day as if it’s a life-or-death situation.
Here’s a simple tip to vastly increase your wealth.
Stop watching the news… all of it.
I realized the news was bad in 2008 when I came home early from work because I wasn’t feeling well. I lay down on the sofa and clicked on CNN’s Headline News for some background noise.
The show ran in a 30-minute loop. I lost count of how many people were murdered, mugged, and/or raped, the number of natural disasters underway, the amount of terror plots foiled, the politicians who’d done shady things, and all the other generally bad stuff happening in the world.
It was depressing.
As I watched the news that day, I thought someone should launch “The Good News Channel.”
The problem is, no one would watch it…
I’m not sure good news actually sells!
For Unbounded Wealth, we need to think “long term.” We need a good foundation to work from, and we need to consistently apply our method. That’s the only way to achieve the results we desire.
Investing in financial markets has turned into a spectator sport. When I do (on rare occasions) watch financial news, I often think it’s like watching ESPN before the Super Bowl. But, while the Super Bowl happens just once a year, the stock market is open almost every weekday of the year.
The “experts” talk over each other and wave their hands in the air just like the former NFLers do on the sports channels. Most of them wear fancy suits, with perfectly coiffed hair, and they seem to know what they’re talking about.
There are also theatrics. For example, there’s even a guy with Bozo the Clown hair who rips heads off stuffed bulls and bears. It’s literally a carnival show.
Clearly, the financial news is hazardous to your wealth.
It’s hazardous to your health, too, as multiple studies have revealed.
But the day-to-day fluctuations of the Stock Market Casino need not impact our thinking. Watching the news could cause us to act at precisely the wrong time and to do the exact opposite of what we should do.
One day, the stock market is down. And the “experts” have an explanation for it. The very next day, that explanation is refuted. And the stock market goes up. Complex theories make the person explaining them seem smart. Then, we seem smart when we tell our neighbor or friends all the complicated reasons why the financial markets are doing this or that.
Forget all that nonsense. It’s counterproductive – indeed, it’s like a pickpocket.
If you don’t know the level of the Dow Jones Industrial Average, you’re probably way ahead of your market-savvy neighbor. It’s not relevant to building long-term wealth. In 30 years, it will be completely pointless to know what level the stock market indexes are trading at today.
Ditch the news. Don’t get bogged down by day-to-day fluctuations. Ignore any theory that attempts to “explain” them.
If you’re clueless about the markets and the economy, let’s keep it that way.