A quick scan through the latest news headlines will tell you how polarized the political world has become, but what you might not know is how it’s affecting investors. According to Certified Financial PlannerTM Rob DeHollander, the last decade or so of red vs. blue bickering has created a disturbing trend: investors making financial decisions based on their political feelings, not the facts.
DeHollander says that the 24-hour news cycle influences how we see our financial futures. “Think about it: Over the last several years, we’ve moved into this digital world,” he says. “So-called news is increasingly opinion-based, it comes at us 24/7 and includes dramatic rhetoric and imagery. It can be upsetting. To some level, we’re all influenced by this messaging. The problem occurs when we take short-term action on our long-term goals.”
DeHollander has found the best way to combat the increasingly negative rhetoric is to show his clients the bigger picture. “We help our clients think strategically, and a key maxim is that the economy transcends administrations,” he says. “No matter what happens over the next four years, presumably Apple, Microsoft and Coca-Cola are still going to be around. Over time, they’ll innovate, gain market share and make a profit. A second maxim is that administrations can influence the economy, but they don’t directly control it. Things are rarely as good or as bad as the talking heads would like us to believe.” A better approach, he says, is to have a sound financial plan, review it regularly and focus on your long-term goals. That he says is a recipe for success.
Robert DeHollander | Certified Financial Planner™ Professional | Accredited Investment Fiduciary®
The financial professionals of DeHollander Financial Group Securities and Advisory Services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.