A New Year & the Opinion of 'Experts'

A New Year & the Opinion of 'Experts'

January 31, 2023

Most media outlets today devote more time and space to the opinions of 'experts' about the current news and reports, than the actual story of event. Inflation, interest rates, debt ceiling, possible recession, and cryptocurrency are some current popular topics. 

When turning the TV channel to one of the business news networks the other day the obligatory question was posed by the show host to the 'expert' guest.  "Following this just released report, what should investors do now?"  The expert gives their opinion and recommendations to move dollars out of the markets into cash OR move cash into the markets suggesting specific sector and may even mention a few individual company names.  A few weeks or months later following another report the same expert(s) can make compelling recommendations that are completely opposite from their previous ones.  Sound familiar?

Whether coming from television or radio, it does not matter what business network is on, I am routinely amused at how the term investors is used.  It falsely implies that investors need to tune in and stay tuned in daily to know what the experts are saying about how to invest now, following the recent report, to be successful.  I understand the programming.  It is focused on the short term and designed to obtain and increase viewer and listener numbers; higher numbers translate into more advertising dollars.  It all works together nicely with the message playing to most individuals' natural human weakness of acting on impulses and feelings.  But works nicely for who?  Not individuals in my opinion, as it is counterproductive and damaging to most individual investors.  

Successful long-term investing requires establishing a well thought out plan along with faith, patience, and discipline to act on the plan and not react to volatile markets, news events, or the latest celebrity expert's short-term recommendations.

When beginning a new year, it is useful to step back from the permanent chaos of political, economic, and market events and ask the basic question, what am I investing for, and how will I know if I am succeeding?  How does one measure investment success? To answer those questions, one must have established realistic goals and plans in place to reach those goals in the targeted time frames.  Established goals, plans, and time frames provide the reference for determining if exceeding or lagging and insight if adjustments are needed.  Here are two additional questions: 1. Do you have a well-developed plan in place?  If not you should.  2. If you have a plan, do you regularly review your plan to make sure it remains on track for the long-term and make needed adjustments if significant life events have taken place? Unexpected events like death of a loved one, divorce, or early forced retirement are some examples.

So, what should investors do now? Ignore all the news and events? Not at all. Be wise and discerning with good balance and enjoy life!  A competent advisor can help you work towards developing a sound financial plan that is reviewed regularly to make sure you remain on track with your plan while looking forward to the future with confidence.

Wishing you much success in 2023!

Prepared by Ron Ring, President Ring Financial Services (RFS), Lexington KY 

Securities and Advisory Services offered through LPL Financial, A Registered Investment Advisor. Member FINRA/SIPC

The opinions voiced in this material are for general information only and are not intended to provide specific advise or recommendations for any individual.  To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

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