Once upon a time, we learned what was happening in the world at regular intervals, typically tying in with when we might pause to eat: breakfast news, lunchtime news, and the evening news bulletin.

In an age of 24/7 news and constant social media feeds, we’ve never been more informed

While these regular bulletins still exist (for now), the internet has turned news consumption from a once-or-twice-a-day pursuit into a continuous onslaught of information.

With 24/7 news now the norm, it takes a huge amount of skilled navigation and immense discipline to remain informed while also avoiding a creeping sense of overwhelm.

Over time, the constant barrage of information could not only damage your mental wellbeing but also harm your long-term financial wellbeing.

News journalists and social influencers craft content to incite fear

As traditional broadcasters, news websites, social media platforms, and YouTube and TikTok creators clamour for our attention, professional journalists and vloggers alike all know one thing: inciting anxiety and fear attracts attention.

Financial journalists, in particular, find numerous inventive ways to attract clicks by turning relatively minor market fluctuations into full-on crises.

Regardless of whether stock prices decline 3% or 10%, if there’s even the hint of possibility that they can shout that markets are in turmoil, then it’s a chance not to be missed.

Exposure to too much noise could hamper your long-term financial security

In the late 80s, a Harvard psychologist worked alongside MIT business school students to find out how financial news affected investors’ decisions and behaviour.

• Group one received access to stock price data as well as a constant stream of financial news reports about the company.
• Group two only had access to stock price data.

Guess what. The study revealed that group one – with access to a constant stream of news – fared worse than the group that only had the price data to go on.

The study also showed that stock market volatility increased the negative impact financial news and headlines had on investor returns. When a high-volatility stock replaced the low-volatility stock, the group without access to the news enjoyed returns that were double what the group with news access achieved. [1]
 
3 top tips to help train your brain to tune out the noise

1. Check your portfolio on a regular (but not too regular) basis 

Instead of checking your portfolio when triggered by scary headlines, set a regular date to check in on your investments each month. Investing is a long-term game, so a regular monthly check-in is more than adequate – in fact, checking on its performance quarterly or half-yearly is equally good.

If in doubt, remember what legendary investor Charlie Munger said: “The big money is not in the buying and the selling, but in the waiting.”
 
2. Keep your long-term goals front and centre

Successful investors ignore the noise and focus instead on the reason they invested in the first place.

Whether you want to save to buy a home, enjoy financial freedom in retirement, or fund your child’s education, keeping your “why” front of mind could help you keep calm and resist reacting to short-term fluctuations.

3. Be selective about which news source you trust
 
With so many headlines crafted to create controversy, it’s essential to be selective about what you take on board.

Take back control and tune out the noise by eschewing the 24/7 news cycle and being more mindful about when and who you pay attention to.

Setting boundaries to lessen your exposure to the constant onslaught of news will not only protect your financial wellbeing, but your frazzled nerves will also get a well-deserved break.

Get in touch

The 24/7 news cycle can be tough to avoid, and we’re here to put headlines into perspective and provide a calm voice of reason.

To find out more about how we could help you tune out the noise and focus on the bigger picture, please get in touch. Email info.wp@titanwh.com or call us on 0800 048 0150.

Please note
This article is for information purposes only and does not constitute personal financial advice. If you are unsure about whether a particular course of action is suitable for you, we recommend that you seek independent financial advice.

The value of investments and the income from them can fall as well as rise, and you may get back less than you originally invested. Past performance is not a reliable indicator of future performance. Tax treatment depends on individual circumstances and may be subject to change in the future. Tax and estate planning outcomes are not guaranteed.

Titan Wealth Planning Ltd is authorised and regulated by the Financial Conduct Authority (FCA reference number: 574458). Registered address: 101 Wigmore Street, London, W1U 1QU, United Kingdom.