06 Feb 2018
Investing
February 6, 2018 glacierinvest

Wow, news outlets can’t stop talking about the stock market. Market volatility is definitely good for the news outlets and pundits. However, the increased coverage and commentary is bad for investors and their portfolios.

Per Axios’ Mike Allen’s AM news feed:

Axios Business Editor Dan Primack (who noted that he hadn’t heard the word “contagion” in a while) emails me: “No one knows anything. Sure, there were contributing factors, like interest rates and the debt limit, and algorithmic trading bits being tripped and falling over each other like dominos.”

  • But, but, but: “No one really knows why markets have big days in either direction, save for when there is a major external event (terrorist attack, etc.). It’s a powerless feeling, bad for cable news punditry.”

Mr. Primack sums up one of the eternal truths of investing and the stock market very nicely. NOBODY knows why markets have big days in either direction outside of major external events. Sure, we all want to know why somethings happens and probably gain a false sense of comfort when there appears to be a reasonable explanation. However, there are so many factors at play when a lot of people and machines are involved in something like markets and investing.

I have two pieces of advice for you:

  1. Avoid, or heavily discount, any explanation of why the market is doing what it is doing.
  2. If you do decide to pay attention, don’t make any decisions based on what you hear.

You and your portfolio will likely be a lot happier in the long run.

Warranties & Disclaimers

 

There are no warranties implied.

Glacier Investment Management (“GIM”) is a registered investment adviser located in Kalispell, MT. GIM may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. GIM’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of GIM’s web site on the Internet should not be construed by any consumer and/or prospective client as GIM’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by GIM with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of GIM, please contact the state securities regulators for those states in which GIM maintains a registration filing. A copy of GIM’s current written disclosure statement discussing GIM’s business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov or from GIM upon written request. GIM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to GIM’s web site or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

This website and information are provided for guidance and information purposes only.  Investments involve risk and unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy.  This website and information are not intended to provide investment, tax, or legal advice.

Powered by