Our economy has bounced from a massive correction to a fast and swift recovery in record time. But the news media is now talking about a second wave of the virus and what we’re seeing in the stock market is a direct reaction to this fear mongering. 

 

If we fall prey to the day-to-day news media and market manipulation, we’ll end up investing emotionally and throwing all logic, good decision making and planning out the window. If you have a good investing plan in place, the market volatility won’t affect you and your money won’t get swayed by emotion.

 

Why is the media so invested in reporting on a second wave of the virus? How can we distance ourselves from emotional investing? In this episode, I talk about the dangers of letting the news cycle influence your investing. 

 

3 Things We Learned From This Episode

An investment strategy vs. an investment portfolio Having an investment portfolio is not the same as having an investment plan. A plan takes into consideration the fact the market is volatile. When you have a plan, you know you need alternative investments to see you through the volatility. 

 

Investing only in the stock market leads to emotional manipulationIf all of your investments are in the stock market, you will always make decisions based on emotion because your market based portfolio is going to be affected every time something changes in the market.

 

The media wants us focused on the wrong information and metricsThe news media is focused on the fact that coronavirus cases are on the rise, and not on the positive news that hospitalizations and deaths are down. This is the narrative they are invested in pushing, often at the expense of your financial wellbeing.