The Fenimore Focus: Investment Tip #7

Tune Out the Noise:

Today, some media outlets compete minute-to-minute to bring us the worst news the quickest. They use many pessimistic adjectives to describe the economy and stock market when we are going through a difficult patch. This viewpoint increases fear and decreases investor confidence. It can be very liberating and therapeutic to focus on your long-term goals and the positive things in life.

People can let emotions get in the way of rational decision making and try to time the market. An overwhelming amount of research shows that long-term investing — even through a stock market downturn — yields better results over the years than trying to time a decline, park capital on the sidelines, and return when “things are better.”

We believe that too much emphasis is put on what an investor should do today to generate activity causing many to chase performance and jump from one investment to the next. Facts reinforce that most investors achieve better returns if they stick to their plan.

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