Coronavirus and the News: How Are You Affected?
The 24-hour news cycle moves from one subject to the next—what should you do?
In recent weeks, we’ve seen several major stories in the news. On the political front, in addition to the arrival of the presidential election through the 2020 caucuses and primaries, we have just experienced the third presidential impeachment in American history. In international news, the latest coronavirus outbreak has hit China, now referred to as COVID-19, leading to closed borders and heightened screening at hospitals worldwide.[1]
It’s not so much the facts of what’s going on that are unusual—none of these matters is unprecedented—but the way that the media reports them can be alarming. Even frightening.
How might these headlines affect me? When major events make headlines, it’s easy to put yourself in the picture. Knowing that such events can affect the financial markets, you may find it easy to wonder how your investments and retirement strategy might fare.
The truth? Political ups and downs, virus outbreaks, and other circumstances might lead to some short-term volatility on Wall Street. But it’s important to remember two things: (1) Your portfolio is positioned to reflect your risk tolerance, time horizon, and goals. (2) The way we experience news has changed over the years, and not all of it for the better.
Never-ending news. On June 1, 1980, businessman and broadcaster Ted Turner debuted Cable News Network (CNN), the world’s first 24-hour television news channel. In the four decades since, other similar channels have emerged. Collectively, they changed how the world experiences news. Notably, it was the dawn of the 24-hour news cycle.[2]
Before 1980, news was very different. Major newspapers might have published several editions during a day, but most areas had only a morning or evening edition. Radio might offer news break updates at the top of the hour, with news programs in the morning, afternoon, and evening. Television followed a similar pattern.
Today’s never-ending news cycle means that news organizations have an interest in continuing to report on the same news story even if little or nothing has changed. Twenty-four hours is a lot of time to fill, and they need ratings to be of value to advertisers. While this doesn’t necessarily mean that the news has become inaccurate or sensationalistic, it might be perceived as repetitive.
It’s also becoming ubiquitous. With our smartphones, we’re often receiving news updates throughout the day.
Keep informed, but don’t be rattled. Your investment and retirement strategy, which you have designed and put into place with your trusted financial professional, is your road map through market conditions. A good strategy gives you room for market changes that might see reactions that last a few days, even a few years. Staying the course is often the smartest move, partially because you aren’t reacting immediately to a dip, and you might benefit from a potential recovery.
So, keep yourself informed, but if you get too worried, have a conversation with your financial professional. They can help you understand what the news means for your financial life and offer you the context you need to remain confident in your strategy.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
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Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor serving the greater Sacramento area with an office in Roseville, CA. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country's leading professional association of fee-only financial advisors.