We do our best to exercise and watch what we eat.<\/p>\n
But how about the news we digest?<\/p>\n
Regarding investing, if you were asked to describe what could happen in the next five to 10 years, how would you answer?<\/p>\n
The answer likely is closely related to the investment stories you watch and read:<\/p>\n
Five reasons the market has risen too far.<\/p>\n
Coronavirus could wipe out trillions of dollars.<\/p>\n
Unemployment rate down.<\/p>\n
Sadly, the last of those three imaginary but realistic headlines either gets skipped or can make the reader think, Yeah, but its still horrible.<\/p>\n
Progress is gradual, incremental and rarely dramatic.<\/p>\n
It just doesnt sell.<\/p>\n
Bad news grabs us in an instant and pushes all else aside.<\/p>\n
Scary news triggers the fear of the proverbial lion hiding in the grass that our ancestors imprinted on the DNA they passed on down to us.<\/p>\n
But instead of lions, we worry about our financial security.<\/p>\n
Could I lose my job? Could my savings evaporate? Could the stock market go down and stay down?<\/p>\n
Its healthy to keep an eye on downside risks in life, but I think some of us spend far too much time worrying about what could go wrong.<\/p>\n
If you spend most of your time thinking about potential bad outcomes, it becomes easier to believe that it not just may happen, but that it will happen.<\/p>\n
Some people sold all their stocks after 9\/11, or during the recent corona crash. They lost faith and got out; they worried things would never get better.<\/p>\n
Its fair to guess they watched a lot of news about things being bad, and how it could get worse still. Better sell stocks.<\/p>\n
All this worrying, in my opinion, warps our view of the future.<\/p>\n
So what can we do to counter this understandable fear and negativity bias?<\/p>\n
I think we need to train ourselves to look for good news. Itll give us a more complete picture of the world.<\/p>\n
When you see a positive story, read it or watch it. Let it sink in.<\/p>\n
When you see a negative story, consider skipping it.<\/p>\n
This sounds simple. Maybe even a little silly. But I think its important. Sadly, you may have to do a little digging to find the good news.<\/p>\n
If you did so over the past 10 years, youd see a story about a treatment that allows most people to get rid of hepatitis C.<\/p>\n
Or that you now can get a vaccine against shingles.<\/p>\n
Or that hundreds of millions of people are no longer dirt poor.<\/p>\n
Or that most cellphones come with a GPS and map so you can find your way around anywhere. Order a cab, even.<\/p>\n
All right; what does all this have to do with money and investing? A lot.<\/p>\n
When you invest for the long term, you invest for what lies years ahead.<\/p>\n
Above, I mentioned just a few recent advances.<\/p>\n
Do you think these kinds of advances will stop or continue? I believe its much more likely progress will accelerate.<\/p>\n
In the end, be careful when you take in news. It can quickly scare you into thinking the future is bleak.<\/p>\n
Good luck.<\/p>\n
Jorgen Vik is a certified financial planner and partner with SKV Group LLC.<\/p>\n
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Link: <\/p>\n
Jorgen Vik: Progress may not sell, but it pays off in the long run - The Daily Progress<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" We do our best to exercise and watch what we eat. But how about the news we digest? Continue reading