Consider the market information you receive (and act on)
Start by evaluating the information you regularly get and how it impacts your day-to-day decisions. Most information today, even those from what we consider to be a “trusted source,” is shared with some kind of intention. Often, that intention is to elicit an emotional response and trigger a fight-or-flight instinct. As hard as you might try to remain objective and unbiased with what you read, this may prove to be a Herculean task.
Think about the spheres of influence within your life. Beyond family, friends, and coworkers, you likely have other information sources such as social media, emails, or news stories. Everyone’s inner circle may be different, but even your friends’ spiciest takes can be less chaotic than headline articles you see lining your feed. So how do you decide what’s worth listening to and what’s worth acting on?
First, you’ll want to approach the information you’re getting with purpose. Don’t be afraid to ask yourself some tough questions like:
- What’s the intent of this information?
- Is this information meant to inform me or to evoke a reaction?
- Does this information change my outlook on what’s happening in the markets?
Second, try seeking out a new perspective. Maybe this means speaking with a financial advisor or someone else you trust. Avoid those with a perpetual “sky is falling” mindset. Talking with someone who has your best interests in mind can help you reframe what’s happening in the economy and why it should matter to you.