In Ep. 153 of the Mullooly Asset Show, Tom talks about how searching for reasons why the market moves up and down each day can lead to misleading headlines in the media. Every time you visit a financial website you’ll find articles saying how one thing is good, and another saying that same thing is bad. It all is too confusing, and can lead you to make poor financial decisions.
Reading Headlines Can Lead to Mistakes – Transcript
Tom Mullooly: Been a pretty volatile week here in the market, so we thought we’d use this time in Episode 153 to check out the headlines. Stick around.
Welcome to the Mullooly Asset Show. I’m Tom Mullooly. Let’s get right into it. Lot of volatility in the markets this week. So what we would do, what we plan to do with this video is just run through some of the headlines that we found online. A lot of folks, when they see the market moving up a lot or down a lot, start fishing around online, looking for reasons why the market went up. So we took some headlines from The Wall Street Journal, from Bloomberg, from CBS MarketWatch.
We just wanted to share a few of these with you so you, as shoppers, splurge in the face of global headwinds. Stocks stabilize on strong retail data from Walmart, the ECB. Do people know what the ECB actually is? They prime a big bazooka for September and stocks for income bonds for speculation. That’s actually backwards. I think they’re trying to make a joke, but we don’t know for sure.
Data errors plague stock traders in volatile week. Earnings outlook for S&P 500 companies looks bleak. The recipe for the ultimate chicken salad sandwich. This is financial news. The industrial sector struggled in July. Warning signs point to a global shutdown. Warning signs point to a global showdown. Trump says the Fed should cut rates. The Empire State and Philly Fed indices hold steady in August, but oil extends decline on trade worries, recession fears. But wait, mortgage rates rest near historic lows as the specter of a recession royals markets. Let me ask you a question. I could go through this whole stack of headlines, because you’ll find good story followed by terrible story. And story that says, “I should rip up my personal financial plan and replace it with whatever CBS market watch tells me I ought to be doing.” Here’s the thing for you.
Question, the Dow Jones, does this impact you? The S&P 500, does that impact you? Do you own the S&P 500, the 500 stocks that make up the index? Do you own those 30 stocks in exactly that weight, that make up the Dow Jones Industrial Average?
The thing that we try and stress with our clients is, we build a plan, we build a map to get you where you need to go. Built into that plan, are the beliefs that markets not only go up, but they also go down. We build that into our forecast and into your financial plan, so that we’ll hopefully arrive at a secure retirement.
Don’t let the news or the headlines that you read … Look, these headlines are written in a way to make you click on them and to make you do the wrong thing. Don’t let the news drive your investment decisions.
That’s the story for Episode 153. Thanks.
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