Markets look forward.
News looks back.
There is a fundamental mismatch between your news feed and your portfolio.
The News Business Model depends on clicks. Humans display a negativity bias, so fear sells.
The Market Mechanism depends on future earnings.
Optimism and growth drive value.
By the time a crisis is on the front page, the market has often already priced it in.
When CNBC drops a Markets in Turmoil segment, the SP500 has a 100% strike rate of being higher over the next 12 months. Seriously.
If you react to the macro headline in stocks, you are usually paying a 'panic tax.'
You sell low, miss the recovery, and buy back when you feel comfortable.
Markets don't reward comfort usually.
It's why risk premium would dictate you get compensated for taking on risk when others don't want to.
For example, we thoroughly believe in buying 52 week highs in a stock - a common answer is 'I couldn't do that, it's going to reverse on me.'
Don't let short-term noise dictate long-term wealth.
You need a framework to operate in, so book in a call with me to discuss how we can help (click here)