Clark Wealth Management Group - ScotiaMcLeod Fredericton

The constant stream of up to the minute business news on TV and the internet may be helpful, if your investment time horizon was measured in minutes - maybe. Unless you are a day-trader, being immediately aware of every market movement or the latest rumour is virtually useless. After all, most investors are investing with several years or even decades in mind.

The evidence is clear that the natural fight or flight response of investors to up-to-the-minute market news is more damaging than helpful. As it is designed to do, real-time business news grabs our attention with sometimes outlandish predictions. These predictions are often based on nothing more than speculation and opinion.  

Wise investors stay focused on the horizon instead of what’s happening immediately in front of them. Doing so allows them to make sensible tactical and strategic decisions based on the longer term trends that really matter. Making financial decisions of any kind based on emotion can be harmful and may well prevent those affected from reaching their goals.

Here are some things you can do in the current environment to improve your chances of success.

Don’t just do something, stand there. Activity, particularly the most dangerous variety, hyper-activity, can have a very negative outcome on investment returns. Short term market movements are unpredictable – full stop. You are unlikely to catch the highest or lowest price of an investment. Instead, you are far better to invest systematically in solid value opportunities.

A watched pot never boils. Don’t check your portfolio value daily. It’s tempting to over-manage in turbulent times. Watching too closely can cause you to overreact to price movements and make impulsive decisions. A better strategy is to stay focused on your mid to long term goals.

Keep your eyes on the horizon instead of looking down to test the ground before taking your next step. If you get caught up in minutia you will very likely miss the meaningful trends. Identifying sustainable trends in the world around us is a better strategy for reliable gains.

Being disciplined in volatile times is critical. An advisor who helps you avoid making the big mistakes at scary times -- valuable. One who also helps you translate your life goals into financial strategies -- worth their weight in gold. An advisor who can also guide you in implementation of those strategies and will work with you over the years to keep you on track -- priceless.

Keir Clark, is a senior wealth advisor, with Clark Wealth Management Group and branch manager at ScotiaMcLeod in Fredericton, NB. He can be reached online at www.keirclark.ca or by telephone at 506-450-6465.

Information and opinions contained herein have been compiled from sources believed reliable but no representation or warranty, expressed or implied, is made as to the accuracy or completeness.

The constant stream of up to the minute business news on TV and the internet may be helpful, if your investment time horizon was measured in minutes - maybe. Unless you are a day-trader, being immediately aware of every market movement or the latest rumour is virtually useless. After all, most investors are investing with several years or even decades in mind.

The evidence is clear that the natural fight or flight response of investors to up-to-the-minute market news is more damaging than helpful. As it is designed to do, real-time business news grabs our attention with sometimes outlandish predictions. These predictions are often based on nothing more than speculation and opinion.  

Wise investors stay focused on the horizon instead of what’s happening immediately in front of them. Doing so allows them to make sensible tactical and strategic decisions based on the longer term trends that really matter. Making financial decisions of any kind based on emotion can be harmful and may well prevent those affected from reaching their goals.

Here are some things you can do in the current environment to improve your chances of success.

Don’t just do something, stand there. Activity, particularly the most dangerous variety, hyper-activity, can have a very negative outcome on investment returns. Short term market movements are unpredictable – full stop. You are unlikely to catch the highest or lowest price of an investment. Instead, you are far better to invest systematically in solid value opportunities.

A watched pot never boils. Don’t check your portfolio value daily. It’s tempting to over-manage in turbulent times. Watching too closely can cause you to overreact to price movements and make impulsive decisions. A better strategy is to stay focused on your mid to long term goals.

Keep your eyes on the horizon instead of looking down to test the ground before taking your next step. If you get caught up in minutia you will very likely miss the meaningful trends. Identifying sustainable trends in the world around us is a better strategy for reliable gains.

Being disciplined in volatile times is critical. An advisor who helps you avoid making the big mistakes at scary times -- valuable. One who also helps you translate your life goals into financial strategies -- worth their weight in gold. An advisor who can also guide you in implementation of those strategies and will work with you over the years to keep you on track -- priceless.

Keir Clark, is a senior wealth advisor, with Clark Wealth Management Group and branch manager at ScotiaMcLeod in Fredericton, NB. He can be reached online at www.keirclark.ca or by telephone at 506-450-6465.

Information and opinions contained herein have been compiled from sources believed reliable but no representation or warranty, expressed or implied, is made as to the accuracy or completeness.