Are you worried about what to do with your money because of some current crisis that is hogging the news headlines: Brexit/Trump/North Korea/Putin/Oil prices/the latest crisis du jour (delete as applicable)?
If you understand the motivations of journalists and their editors you will know that they don’t care about you or your money. They just want to sell more newspapers, get more views or receive more clicks, all to keep their true customers (advertisers) happy.
Think about it this way: What world events that happened forty years ago that have had a significant and sustained impact on your wealth today?
OK, I’ll make it easier, how about 10 years ago?
5 years ago?
What about last year? What big news events last year have left you poorer today?
Sure, stock markets react to negative news events but that is the sum of investor reactions to those events. Short-term events are soon shrugged off as the market continues its upward trend.
So why will worrying about the latest crisis affect your wealth in a plan that is going to last 40 odd years?
It’s far better to accept the rough with the smooth and ignore the news headlines and know that invested, your money will be working harder for you than if it is sitting idle in a bank account somewhere.
This fascinating UK Financial History chart from Scottish Widows shows how the UK stock markets have reacted to major global events since 1950. Sure, they have crashed on a number of occasions but regardless of the event, the trend is ever upwards.
If you are looking for advice on what to do with your money contact me.