From bushfires to Coronavirus - five ways to turn down the noise around investing
The key points are as follows:
The coronavirus outbreak, while horrible from a human perspective, is just another of a long list of worries for investors.
Our natural inclination to zoom in on negative news combined with a massive ramp up in the availability of information is arguably making us worse investors: more fearful, more jittery, more short-term.
Five ways to help manage the noise and turn down the worry list are:
put the latest worry in context;
recognise that shares return more than cash in the long-term because they can lose money in the short-term;
find a process to help filter noise;
make a conscious effort not to check your investments so much;
look for opportunities that investor worries throw up.