The Times Herald (Norristown, PA)

Should breaking news alter your investment strategy?

- BRONWYN MARTIN

Our days are filled with alerts and notificati­ons that bring the world right to our fingertips. For investors, it’s natural to consider the investment implicatio­ns of headlines like trade disputes, political uncertaint­y and global business decisions. If you follow the news, it’s important to consider just how much, or how little, trending stories should influence your financial decisions.

Be aware, but don’t overreact

When reading daily headlines, it’s easy to draw quick conclusion­s about what may happen in the world based on emotion or your own perception. But for the sake of your financial health, it is important to avoid overreacti­ng to specific news events.

When evaluating whether you need to make changes to your portfolio, look for persistent trends that may affect the broader economy’s vitals.

The market has overcome challenges before

It’s also important to remember that historical­ly, markets have rebounded after large business decisions, global news and challengin­g political situations captivate the news cycle. In the past century alone, America has witnessed the Great Depression, assassinat­ions, political scandals, deadly terrorist attacks and financial crises.

At times, markets have reacted negatively to specific events that dominate headlines. But historical­ly a sense of normalcy has returned, allowing investors to once again turn their focus to underlying investment fundamenta­ls.

Focus on your goals

Regardless of what is happening in the current news cycle or markets, one investing principle holds true: focus on your financial goals. If you are accumulati­ng wealth to meet a goal that is years away, market volatility that happens today, next week or next year is likely part of the normal pattern you should expect.

If specific headlines or trends are making you reconsider your investment strategy, re-evaluate your risk toler-

ance and consider meeting with a financial profession­al for a second opinion. Together you can discuss how to best position your portfolio for the current environmen­t in a way that is consistent with your goals. Bronwyn L. Martin is a Financial Advisor Chartered Financial Consultant with Martin’s Financial Consulting Group, a financial advisory practice of Ameriprise Financial Services Inc. in Kennett Square and Havre de Grace, Md. She specialize­s in feebased financial planning and asset management strategies and has been in practice for 18 years. To contact her visit www. ameriprise­advisors.com/ bronwyn.x.martin

 ??  ??

Newspapers in English

Newspapers from United States