We love trends. Whether clothing styles, car bodies, kitchen layouts - whatever is current and popular is what attracts us.
Retailers know this. The "new and improved" label is critical to keep customers reaching for the product on the shelf.
But trends are by nature transient. That's the appeal from a marketing perspective. What's "hot" this season will be passe next season.
There is an abundance of financial advice available today. There are all kinds of strategies ranging from basic to sophisticated. There is a place for a variety of financial products.
Our philosophy has always been quite simple: spend less than you make, invest what you can on a regular basis over a long period of time, and don't make a lot of changes if you are on track. For most people this works the best over a long period of time. It's not fancy, and it's not designed for the investor who is looking for more robust products. But it works 99% of the time.
So how to avoid getting sucked into the news cycle with the latest financial trend?
1. One option is not to watch financial media! Someone I am more objective and less emotional when reading an article in the newspaper than when watching something on television. That's the power of that medium.
2. It's good to be informed and to learn. So one option is to find a method of learning about current trends which works for you. The main idea is to resist the temptation to do something based on a quick news broadcast or a hot tip from your coworker.
3. There are sources which are more unbiased than others. Your local library is one option. The challenge is not resist the temptation to act when you know you are already on course. So do some research and give yourself a cooling off period before buying or selling anything.
4. Diversify. Spread out your risk.
5. Think about the long term. Could you make a quick buck by buying and selling? Yes, but most people can't do it regularly for the long haul.
The next time you feel the urge to buy the newest stock, just look back at some of those ties in your closet dating back several years - if you have any. Those were the "in" thing at the time.
This too shall pass.
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Disclaimer: The views expressed on this website reflect the personal opinions and experiences of the writer. Nothing in this article constitutes financial advice in any way. Information on this website should not be relied upon for investment or business advice. Please consult with a qualified financial professional before making any financial decisions. 3800222