I am amazed at how scary, technical and complicated the media portrays investing. Every day we hear "the sky is falling" scenarios from the pundits. Although we all know that conflict and drama sell news, we also know that distortion and exaggeration are detrimental to producing fair and balanced economic news. In today's current environment, I believe that the unbalanced and unrelenting negative coverage of economic news is hurting the country, and to some extent, creating a self fulfilling prophesy. For example, the media is reporting that the United States will be in a recession by the end of the year.
The media repeats this message over and over. Consumers become so fearful of the future that they cut back on their spending or don't spend at all because they are so scared. People with jobs, savings, homes and families want to act responsibly. But they are waiting for the wolf at their door. So they lock up the henhouse and wait and wait. I believe the media fuels this vicious cycle with distorted news coverage. To some extent, the psychology of waiting for the wolf at the door has resulted in many factors that are causing a loss to our economy. The media is the worst place to seek financial advice. Unfortunately, in the current environment, financial news is inflammatory, often distorted and extremely negative because the competition for an audience inhibits objective reporting. Additionally, there is an overwhelming amount of information available on the internet which make searching for financial advice very confusing and ultimately futile. It's a little like trying to diagnose an illness with information from the internet and without the expertise of a doctor. Being informed is important, but when it involves your financial future, you need the advice of a professional to help make sense of the cacophony of financial news we are all subjected to on a daily basis.
When it comes to something as important as your financial future, stop worrying about every headline, take a break from the news, reduce your stress and seek the advice of a financial advisor.
Gerber Kawasaki Wealth Management
2716 Ocean Park Blvd #2020
Santa Monica CA 90405
Securities offered through LPL Financial, member FINRA/SIPC. Investment advisory services and fixed insurance offered through Gerber Kawasaki, Inc., a registered investment advisor and separate entity from LPL Financial.
This material contains forward looking statements and projections. There are no guarantees that these results will be achieved. Investing involves risk including potential loss of principal.