Financial News; HIT OR MISS?
What kind of financial news do you pay attention to? CNBC, Fox Business Network, or do you get your financial dose from reading the Wall Street Journal?
If you’re into any of those, more power to you. What we have sourced from “The Simple Dollar”, is that people keep track of the news for a few reasons. You’re either trying to learn something or trying to build up a more informed opinion about an issue. Investments are an aspect of your life that should be based on your personal and financial conditions and financial news does not help with any of that. News should be just taken as news, rather than allowing the news to influence you into making important life decisions.
Let’s look at news reporting in general. Headlines usually pick out the highlight of the event reported and turn it into a single catchy statement. This is often to draw attention, and realistically, we wouldn’t be able to tell if the event was that big of a deal because we weren’t there ourselves. We’re trusting a source that only provides us with the highlights, but the factual details for that particular event are usually found much later. Financial news does something similar. Since the market fluctuates so much, there is only a limited amount of information that can be accurately shared with a news source, without the nitty-gritty.It is a significantly lousy idea to take financial action on anything without having factual information. Based on your personal needs, an immense understanding needs to be developed. why that action is being taken from your end. While acquiring education about financial matters, it is important that you have more of a substantially accurate source of information. Rather than reaching for news that is intended for attention-grabbing, it would be wiser to grant your attention to something more educating.If financial news can’t be an accurate source, then what would be? Books.
One of the main things that you can use to educate yourself is by reading books. Based on what you’re looking for, this would be a book with regards to financial education. However, you would still have to do some research about the author of the book you are reading. You need to know the authority the author had to write and publish the book. If the figure is authoritative enough to write a book about finance, then it is most likely a reliable read for you to source your financial education from. Research reports by different organisations.Most financial organisations work on yearly reports based on the trends that they might have seen, or if they have noticed a new change in the system. They also conduct studies on different samples of people, which makes it more accurate since the data is recorded from real users and based on their experience. These reports contain great detail and are lovely with regards to statistical analysis and for you to come up with your general summary.Financial blogs geared toward financial education.
Several bloggers write for the sole purpose of wanting to educate their readers. Rationally, anyone can indeed become a blogger, and anyone can put up a blog about anything. Once again, it is essential to recognise the organisation and source of where it is coming from.
Personal research and your financial plan.
These things go in a flow. After you have attained all the information from reading books, reports, updates, getting ahead with your research, your plan comes into being. Your financial success depends on how diligent you are with following the plan on your long term investment goals. These plans and decisions would be based on things that are much more concrete rather than just confusing yourself. Financial news can be a platform where information might be opinionated or inaccurate.
“You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future.”
We certainly don’t want to promote the fact that financial news is useless, as it does have its credits. Financial education has to start from somewhere and you should use these news outlets to remain informed. However, as with most things you read online, take the news with a grain of salt and don’t allow it to be the sole reason for your future investment decisions.
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