At some point, you have probably heard one of us say, "stay the course."
Too often the philosophy is interpreted as “do nothing.” That is a shame because sometimes, "doing nothing" is exactly what you should do. Consider these points when the market headlines seem dire:
- There are two types of headlines: Market headlines and personal headlines. Focus on the personal Headlines; these relate to YOUR specific goals and objectives; they matter much more to your financial situation than market headlines
- Yes, it's good to be aware of what is going on in the world. But remember, financial entertainment (talking heads, stock picking shows, etc.) should never be mistaken for financial advice.
- Market headlines can be dire and the temptation to react or do something can be very strong. Stay calm and remind yourself that your financial plan should be PROACTIVE not REACTIVE
- Investors should understand that ignoring all the market noise isn’t being “ignorant” or putting one’s head in the sand, but rather is key to a basic tenet: "stay the course, and focus on controlling the things you can control."