The goal of any investor is to have the most successful experience possible, or at least an experience that will help them reach their financial goals. Unfortunately for many investors the experience is anything but successful. As we have said for many years at CJM investing is easy it’s just not simple.
All you need to do is follow a few simple rules, rules we have professed to our clients year after year such as global diversification, keeping investment costs as low as possible, removing emotion and one of the most important rules to follow as highlighted in this article below from US News and World Report- IGNORE THE NEWS; as the article points out this is “the secret to obtaining higher returns”
While the notion of ignoring the news might be a secret to other investors, for clients of CJM it’s been at the core of our investment discipline. If it was as easy as basing your investment decisions by what you read in the papers or hear in the media we would all be millionaires many times over. Instead many investors fail to beat a simple index because they allow the current news reports to dictate their investment decisions.
Great example is that despite the news from overseas, the European markets are about to log their seventh straight week of positive returns, and how about the beleaguered home building industry? Nine of the 11 largest home building stocks are at a 52 week high, and lastly with all the doom and gloom news, over 30% of the S&P 500 companies are at 52 week highs.
While some may question our “ignore the noise” mantra, this simple piece of advice has been, and will always be the key to higher returns.