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"The problem with information is not that it is diverting or generally useless, but that it is toxic.."
- Nassim Nicholas Taleb - Fooled by Randomness
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Ignore the Entertainers
One of the most important maxims of successful long term investing is to ignore the entertainers- those ubiquitous talking heads on the TV, radio, internet and other media. The term entertainer is used purposely as they are not advisors. If there is a difference between our current economic scenario and those previously it is this- everywhere we turn there are people all too willing to tell us what to do with our money...even though they know nothing about us.
15 or so years back I wrote a regular column for The State newspaper and I would tell folks that the generic advice proffered was worth approximately the cost of the paper which was about 25 cents. Generic advice, no matter how well intended, is of little value because many times it is inappropriate or inapplicable to your situation. Wealth planning is highly personal and that is precisely why we stress a holistic approach to managing investments. In our view, this can only be done with specific goals in mind.
Individual investors have to understand the difference between information and advice. The world is awash in all sorts of information that can provide support for almost any narrative that we want. This can be positive but often adds "fuel to the fire" to the idea that one should exit the market or buy gold.
We often call this type information "financial junk food." A steady diet of this can create substantial harm to your financial future. The antidote is true, impartial (read- not from an insurance salesman, broker, etc.) advice geared to you and your long term goals.
- James E. Wilson, CFP® My Blog
 Mangers vs. Markets once again shows that active fund managers cannot consistently and predictibly beat the markets over long periods, especially after costs are considered. Investing is long term by definition and should not be swayed by short term trends or ourperformance. |
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WealthRx® is J.E. Wilson's unique wealth management process, designed with successful physicians in mind. Learn more. Contact 
