Don’t Let the News Confuse (You)
We believe Ghandi was spot-on when he said:
And sometimes, it is important just to slow down, deliberately absorb things, and appreciate what you have. The United States’ latest conflict with Iran and surprise killing of Iranian Major General and second-in-command, Qassem Soleimani, has affected all of us in our personal and professional lives, and has caused a completely unsurprising deluge of bold headlines and provocative stories from the media:
What Stock Market Investors Need to Know About Intensifying U.S.-Iran Tensions
Here’s Why The Stock Market Hit Record New Highs After Trump’s Comments On Iran
Is the U.S. Headed For World War III? Here’s What Experts Say as Twitter Fears the Worst
The insidiousness of today’s 24/7 news cycle can steer even the most objective and rational investor wrong if they are not careful, and we believe there is a very simple lesson that needs to be internalized: You can pay attention and read the headlines, just don’t try to trade them, as smart investors ignore the news.
Even though circumstances may appear to be grave, we recognize how humor helps people cope with conflict, fear, and uncertainty And Gen Z didn’t let us down in the humor department, as the new short-form video app TikTok had 1.6 billion views of videos containing #WWIII and #WW3 hashtags, on top of an uncountable number of World War 3 memes published to the internet:
#WWIII Trends on Social Media Following Soleimani Killing
Perhaps a lighter and more appropriate approach to the media and endless news cycle is to find humor in it, especially in the predictions made by economic and financial talking heads, which never fail to make us laugh. Our recent fave is this worthless quote about what to expect in 2020:
A much more appropriate, salubrious, and blunt quote was made by Malcom Polley, president of Stewart Capital Advisors:
The chart below, which reviews the S&P 500’s performance after various crises since World War II, found that any recovery from a market drop often happened in far less than a year’s time. While what’s past is prologue, we feel the probability is quite high that the current situation in Iran and the Middle East will simply be the next Market Shock Event line item on this list, lending even further support to our “don’t panic” thesis.
Please do not misconstrue the message: these events are serious, important, and carry great geopolitical significance; however, when viewed from an investment and economic lens, they end up being temporary blips on the longer-term radar screen.
When the world is rushing by, and we are safe in our homes with our families, it is valuable to remember what is important. We are clearly biased, but the kids in our Towerpoint Wealth family are adorable, no??!!
Millie (7), Claire (4), James Keefe
Joe & Meg Eschleman, Henry (10)
Nathan, Baby Grayson (3 months), Jess
Happiness – Not Fake News
Credit to Carl Edwards at the Behavior | Gap.
In addition to showing appreciation for our families and chuckling through Gen Z internet memes, a number of trending and notable events occurred over the past few weeks:
- David Stern, transformative former NBA commissioner, dead at 77.
- Ricky Gervais roasts all of Hollywood during his Golden Globes monologue
- Iran denies cover-up amid public anger over Ukrainian plane crash
- President Trump says Iran is “standing down”, vows to continue pressure
- Meghan Markle and Prince Harry announce they will be “stepping back” from their roles as senior royals
- Neil Peart, Rush drummer who set a new standard for rock virtuosity, dead at 67
- Elizabeth Warren, Bernie Sanders spar ahead of February 3 Iowa Democratic caucuses
- MLB’s Houston Astros fire GM, manager over sign-stealing scandal
- Oscar nominations for 2020 are revealed – Joker leads the way with 11 nods
Lastly and as always, we sincerely value our relationships and partnerships with each of you, as well as your trust and confidence in us here at Towerpoint Wealth, and encourage you to reach out to us (email@example.com) with any questions, concerns, or needs you may have. The world continues to be an extremely complicated place, we are here for you, and look forward to connecting with, helping, and being a direct, fully independent, and objective expert financial resource for you.