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Adrian Mastracci, investment counsel at KCM Wealth Management says, "The bottom line is that much of the day to day information overload is neither relevant nor required." |
For Immediate Release
Vancouver, BC (June 23, 2004): Is the sheer volume of available investment information getting overwhelming? Just a little, perhaps.
Adrian Mastracci, investment counsel at Vancouver’s fee-only KCM Wealth Management, comments, “More and more investors express the frustrations of sifting through enormous volumes of daily information. All in the quest to make sense of what applies to them.”
“They have an insatiable appetite for the daily volumes of research, predictions and advice,” notes Mastracci, “Even if much of it is conflicting.”
“Investors scour the internet, newspapers, television, radio, journals, investment newsletters, magazines, annual and quarterly reports, press releases… just to name a few,” adds Mastracci, “Some are plugged in 24 hours per day. Some are way past the point of overload.”
“As you will see later, my strategy that tames the daily burden from the information highway is short and simple,” mentions Mastracci, “First, however, let's determine if the following daily scenario sounds familiar to you.”
You feel a compelling need to keep current on the business and economic news of the day, both local and global. Especially, on the stocks and funds you own. Your goal is to accumulate a nestegg sufficient for retirement. You want to be fully informed before making your decisions, particularly those that affect your long-term direction.
You listen attentively to analysts saying that the economic recovery is proceeding well. Not a day later, perhaps the same day, other sources dispute some factors about that precious recovery. Then there is hope about the improving retail sales from the previous month. Next, you find yourself browsing something about renewed fears of inflation affecting progress.
Familiar stock names appear in headlines, some with notable regularity. Various opinions say that prices still have a ways to go on the upside. Then profit warnings rattle those hopes once again.
You hear pundits say the expected rise in interest rates should not cool the economy's outlook. Soon thereafter, someone else comments that the consumer is struggling with the accumulated mountain of debt. It seems that for every prediction of optimism there is one of gloom.
“Are you confused yet?” asks Mastracci, “Is this not the classic case of information overload?”
“I empathize with the investors’ frustration. It’s a huge undertaking to keep up,” says Mastracci, “Even for investment professionals who are trained to apply the appropriate filters to separate relevant information from noise of the day.”
“The big question is how do you make informed decisions with mountains of information at your fingertips, often conflicting?” states Mastracci, “More important, are there information filters available that suit you?”
“That’s the answer. You need to do some filtering to get to what’s important to you about absorbing all this information,” remarks Mastracci, “Perhaps, plenty of filtering.”
“Over the years, I’ve developed my strategy for taming the enormous overload,” explains Mastracci, “My set of filters if you will. Being in the business means that I get an even bigger overload sent my way every day.”
Here are the filtering devices that work:
- Prepare your written investment plan consistent with your personal goals. Accumulating your nestegg is a long journey, not a 100-yard dash.
- Have complete confidence in your chosen strategy before you implement it. There will be plenty of temptations for second guessing and rear view mirror gazing along the journey.
- Have the discipline to stay the course throughout the inevitable correction periods. Yes, expect more to come your way. Some corrections can be dramatic, frequent and lengthy. A little rebalancing helps you out.
- Be patient with your chosen personal strategy. Investment markets are not predictable; hence, a longer time horizon increases the probability of success. Investments can be risky when the time horizon is short, defined as less than five years.
- Have the courage to ignore the daily volumes of research, predictions and advice from market gurus. Listen if you want, just don't get distracted by the noise.
“Knowing your desired destination means that you can easily deal with the distractions that come your way,” points out Mastracci, “You will have no shortage of them. Some may even make a convincing arguments.”
“That is it! In a world of confusion, the winding road is simplified,” suggests Mastracci, “The bottom line is that much of the day to day information overload is neither relevant nor required.”
“It won’t be easy to stay your chosen course,” summarizes Mastracci, “Adopting my filters implements the essential tools for your nestegg accumulation, while taming the overload.”
“Ease up and take a welcomed breather," concludes Mastracci, "Do you have some filtering to do?”
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