Understanding how media coverage can affect investor behavior.
It’s never been easier to stay informed — or overwhelmed. Between 24/7 cable news, financial websites, social media, and podcasts, investors today are surrounded by more market commentary than ever. While staying up to date can feel responsible, the reality is that not all financial “news” is helpful when it comes to long-term planning.
Let’s explore how headlines can affect your investment thinking — and what really matters when it comes to making smart financial decisions.
News Is Built to Get Attention — Not to Offer Advice
Media outlets make money by capturing attention, not by offering objective, long-term guidance. Whether it’s a cable news segment or a push notification, headlines are often crafted to generate emotion — especially fear or urgency.
Consider these recent headlines:
- “Recession fears grow after Fed comments”
- “Stocks plummet on economic uncertainty”
- “Investors flee to safety — is this the start of a crash?”
Each of these headlines could describe a single day’s event. But for long-term investors, reacting to them can do more harm than good. Jumping in and out of the market based on daily or weekly news can lead to missed opportunities and unnecessary stress.
Short-Term News vs. Long-Term Goals
What matters to journalists in the moment — rate hikes, earnings misses, or breaking political developments — might not materially impact your financial future. A long-term investor should be guided by their personal financial plan, not daily market noise.
Example: In 2020, some of the scariest headlines in modern history surrounded COVID-19, lockdowns, and a market crash. But by the end of the year, the market had recovered dramatically. Investors who stayed the course were rewarded for their discipline.
If your goals are five, ten, or twenty years down the road, what happens on a given Tuesday isn’t likely to change your overall trajectory — but your emotional response to it might.
Confirmation Bias Can Be Costly
Another risk of consuming too much financial media is something known as “confirmation bias.” This happens when we seek out or interpret information in a way that confirms our existing beliefs. If you’re already worried about a downturn, you’re more likely to pay attention to bearish headlines — even if the broader data doesn’t support that fear.
Investors who fall into this trap often make premature or unnecessary changes to their portfolios. That’s one reason we encourage clients to talk to us before making decisions based on what they see in the news — it’s our job to separate signal from noise.
So… What Should You Pay Attention To?
We don’t suggest ignoring the news completely — staying informed is part of being a responsible investor. But we recommend focusing on:
- Trends, not moments: One-day drops or gains are rarely meaningful.
- Policy changes that impact planning: Tax laws, retirement plan rules, or major federal legislation.
- Your own goals and timeline: The news rarely knows when you want to retire, how much you’ve saved, or what you plan to spend.
Most importantly, have someone in your corner who understands your situation and can offer context. That’s what we’re here for.
The Bottom Line
The market will always have up days and down days. The headlines will always have something urgent to say. But your financial success will be determined more by how you respond to the noise — not the noise itself.
So, the next time you hear a dramatic headline or see a scary chart online, take a breath, step back, and remember: you’re not investing in this week. You’re investing in your future.
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Investment Advisory Services offered through Valmark Advisers, Inc. a SEC Registered Investment Advisor 130 Springside Drive, Suite 300 Akron, Ohio 44333-2431 1-800-765-5201.
Velekei Giles Financial Advisors is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.
Past performance does not guarantee future results.