Last weekend I spotted two headlines from two reputable stockbroking firms: ‘US Stocks Grossly Overpriced’ and ‘US Stock Market is Performing Well’. If I didn’t know what I was doing, they would have confused the hell out of me.
In a second, I’m going to tell you how you can invest successfully in the stock market without having to pay attention to a single newspaper headline, and, why your stockbroker is never your friend.
But first, take a look at this video about how one man learned the difference between stock picking and an actual investment philosophy, but only after he lost half his net worth.
Now, as promised, here’s my take on how to invest successfully in the stock market without having to pay attention to a single newspaper headline.
- You shouldn’t be relying on news reports for your investment advice. You have better things to do than parse the millions of facts that are released daily about the hundreds of things that can influence a share price on any given day
- All the ‘noise’ is irrelevant, once you have a long-term investment philosophy
- Forget stock picking altogether. Whether you’re doing it on a small scale or in a big way, picking a stock here and there simply does not serve your long-term goals
My advice is simple. Don’t commit to doing anything until you understand your short, medium and long-term financial goals. This way, you have an objective for your stock-market activity, and where you have an objective, you can plan for an outcome.
As an independent financial planner I specialise in helping people identify their financial objectives and the strategy required to achieve them. If there is a place in your strategy for the stock market, I will advocate an approach which should see us meet your objectives.
You won’t need to pay attention to newspaper headlines and stock market wobbles and you certainly won’t need to take your stockbroker out to dinner, because he or she will be the least important person in your financial life.
Enjoy the rest of your weekend.