Compared to the world of 30 years ago, the road to investing is filled with distractions. Advances in technology have made it possible to be active 24 hours a day, amplifying what’s called a fear of missing out (FOMO) in our lives.
The good news is, with all that technology an enormous amount of data has been collected — and from that data, science. In fact, the science is even more compelling today than it was in the past. On one hand, it was harder to invest 30 years ago because the data and science wasn’t all there. It was also an easier time to invest because people weren’t trying to sell you something 24/7.
Today we see a situation where all of that is inverted. We have to deal with a lot of advertising and attempts to persuade us. Fortunately, we can rely on decades of data to inform our decisions. The challenge is to separate fact from fiction.
Whenever it comes to investing, somebody is going to try to scare you to do one thing or another. There’s money in it for them. Pundits only get paid if they keep us watching, and they consistently resort to a message that gets ratings: Be afraid.
More often than not, you’re likely to find that staying the course — investing in globally diversified portfolios — and keeping your nerve despite all the talking heads on TV — is the wise thing to do. Remember, everything that is in the news is already priced into the global markets.
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Jeff Holland | VIAIV