Good morning & happy Monday!
“I learned that courage was not the absence of fear, but the triumph over it. The brave man is not he who does not feel afraid, but he who conquers that fear.”
– Nelson Mandela, former president of South Africa
My friends, this morning I would like to offer a warning: there are people who want to divide us and scare us.
These people are not our friends, I would go so far as to call them our enemies. They don’t know us, they don’t care about us, they are simply using us. And they have a very intentional recipe to sabotage us … because they make a fortune by doing so.
I am talking about the media, in particular for this memo, the financial media.
Now, the media and politicians both understand and utilize one very key, powerful emotion for their benefit: fear.
With the political season beginning to heat up, over the next 17 months until election day you will hear both sides of the political aisle trying to scare you.
Prepare yourself … I predict you are going to hear something along the lines of this:
- Biden – the Republicans are dangerous! If you vote for them you are giving up your liberties and we may never recover from the devastation they will bring upon our country. I am terrified of what will happen to the United States if he becomes president. Vote for me because I am not as scary.
- Trump / DeSantis (after beating each other up in the primary) – the Democrats are dangerous! If you vote for them you are giving up your liberties and we may never recover from the devastation they will bring upon our country. I am terrified of what will happen to the United States if he becomes president. Vote for me because I am not as scary.
The more scared you are the more likely you are to vote. Neither side is going to say, “I think I have a better agenda for our nation, but the world is not going to end if I don’t get elected.” That does not drive people to the polls, so they instead they attack the other candidate and try to whip up their base to show up in big numbers. It’s the proven recipe that both sides employ every single election season. It seems like nothing is off limits to scare people to the polls.
Who wins when they do this? I don’t know about you, but I don’t think the citizens win from this kind of political system. After watching a debate I find that I am exhausted. A large portion of our society is so turned off by this campaigning style that they just tune out. The politicians may win, but the people lose.
I submit to you it’s exactly the same with the news media.
Think about after 9/11 … we were glued to our TVs. I probably watched the news for 8+ hours a day for a few weeks in that timeframe. The media loved it! The more people who tune in the more they can charge for a 30 second commercial. The more they can charge for commercials the more money they make. So, the news media has an incentive to scare you. The more scared you are the more money they make.
This is quite disgusting if you ask me. But it works, so the media will continue to do it.
My position: “Investing involves short-term fluctuations, but incredible long-term potential for gains. It requires patience and no one, I repeat no one, can time the market. The best way, in fact I would contend the only way, to be a successful long-term investor is to simply ride out the short-term bumps in order to profit the long-term returns the market provides. Patience and discipline is the recipe for investing success.”
You will NEVER hear that message on CNBC, Fox Business or any other financial news outlet! Never. Why? Because, if you received that message then you would realize that all their coverage, that sensationalize virtually every single event, DOES NOT MATTER!
You would realize it does not really matter what the fear-of-the-day message they are delivering is and you would simply turn it off realizing your life is better without them. They cannot allow that to happen … if you turn off the TV, stop clicking on the articles, and cancel your newsletter subscriptions then their paychecks stop. So, instead they sensationalize stories … “bombshell developments,” “shocking revelations,” “Breaking news.”
For the good of your mental wellbeing and your financial wellbeing I can’t in strong enough terms encourage you to turn that crap off!
One of my favorite bands Switchfoot has a song called “Selling the News.” Here’s a few lines from that song:
America listens as the story is told
With the eye on the truth as the story unfolds
But the ratings determine which story was sold
We’re selling the news
Substance, oh, substance where have you been?
You’ve been replaced by the masters of spin
Who make good looking books and write history in
We’re selling the news
We are patient, disciplined investors who understand that short-term headlines will not dictate our long-term investment plan. We will not be vulnerable consumers of the garbage the media is selling. We refuse to allow the media to have that level of power of over our lives. We understand it is unhealthy and unprofitable.
Instead, we will stay focused on our financial goals and the plan we have established to accomplish those goals. We will accept, even embrace, that short term volitivity is the necessary price to pay in order to accomplish these cherished goals.
I know I probably send a message of this type at least once a year, but it is so important to reinforce this message. The enemy (the media) can sneak up on us and suck us in if we are not diligent to their schemes.
It’s an honor to serve you as we navigate these investment waters together. If there is anything my team and I can do to support you further, please let us know.
Make it a great week ahead!