Limit Media Hype Exposure

Media Hype? Limit Your Exposure During A Recessionary Period

In light of recent media reports on stock market performance, political issues, scandals, and other ‘news-worthy stories,’ limiting yourself from media hype as much as possible may be right for you and your investments.  Every day the American public is exposed to media stories that can negatively impact them and their investment decisions. During the last recession, the media’s reporting caused widespread panic as millions of Americans chose to liquidate their accounts out of fear of ‘losing their money.’

As we approach a possible secondary recession, remember that liquidating shares in a downward market can cause financial harm you may not fully recover over. It is up to you to investigate the validity of the news story and source and consider how expensive market information is if you react prematurely to it. Together, we can determine an overall plan for your investments, re-examine your goals and plan accordingly.

The relationship between percentage changes and basis points (BPS) determines a change in a financial instrument, such as the stock market and bond yields. The Basis Point (BPS), is used to calculate changes in interest rates, equity indexes, and the return of fixed income securities. Regardless of daily BPS movements, a recession is when the economy declines significantly for six or more consecutive months in five key economic areas: Real Gross Domestic Product (GDP), income, employment, manufacturing, and retail sales. According to some economists, we are entering into a recessionary period as indicated by an inverted yield curve. The question is, how long will it last and are we truly entering a recession?

When it comes to money and investing, be diligent on how you choose to react. Many media reports are non-biased, while many others are biased. If you’re concerned about financial implications related to what’s being reported, have a conversation with us regarding your portfolio. While there are a few caveats, typically consistent investing in a down market can yield rewards later when purchasing shares at a reduced price.

© 2024 Trajan® Wealth LLC. Nothing in this blog is intended as investment advice, nor is it an offer to buy or sell any security. Please consult your financial advisor for questions about your personal financial situation. All investments involve risk, including the potential for loss. Trajan Wealth clients and employees may have a position in any of the securities mentioned. Portfolio holdings and other data are subject to change at any time and without notice. Additionally, the above links provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Trajan Wealth, L.L.C., of any of the products, services or opinions of the corporation or organization or individual. Trajan Wealth, L.L.C., bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. These materials are for informational and educational purposes and are not designed, nor intended, to apply to any person’s individual circumstances. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Please consult with your legal and/or tax advisor before making any tax-related decisions.

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