Here’s Why Investors Should Avoid Financial Noise

This is a sponsored post written by The Cheat Sheet on behalf of Nationwide®.

woman checks her phone while on a laptop

Avoid the constant flood of financial news filling your screens | Pixabay

We are inundated with financial noise everyday. Televisions. Computers. Tablets. Smartphones. No matter what screen you’re looking at, you can easily find dramatic headlines talking about the economy or stock market. While this noise can be entertaining in the short run, most investors should focus on the long-term.

The “long-term” is a somewhat opaque term frequently used in investing and personal finance discussions, but in most cases, the word refers to several years or decades. If possible given your financial situation, thinking in terms of decades is substantially helpful when applied to the stock market because it helps smooth out the daily turbulence, or even the year-over-year turbulence. It’s even more helpful when looking at international equity markets, given the recent turmoil.

Behind all the breaking news stories about the latest reasons to worry about your investment dollars, there is a global market filled of innovators and companies that continue to return value to shareholders, given enough time.

Source: Nationwide Financial

Source: Nationwide Financial

As the chart above from Nationwide and Bloomberg shows, the MSCI EAFE Index has been climbing higher since 1969. Dips and major corrections have been seen along the way, but the popular benchmark for international equity markets displays an impressive uptrend over the long-term that is likely to continue given global population growth and rising incomes.

Patience is a virtue in life and a necessity for investment portfolios. The next time you feel like moving money because of a headline touting economic doom overseas, take a deep breath and review your long-term investing strategy. History teaches us that making a quick decision based on emotions and short-term noise is usually the wrong move.

This is a sponsored post written by The Cheat Sheet on behalf of Nationwide®.

This information is general in nature. It is not intended as investment or economic advice, or a recommendation to buy or sell any security or adopt any investment strategy. Additionally, it does not take into account the specific investment objectives, tax and financial condition or particular needs of any specific person. We encourage you to seek the advice of an investment professional who can tailor a financial plan to meet your specific needs.