October 2019

Posted by | October 29, 2019
Why the financial media is a lot like porn

The US S&P500 hit a record high yesterday. Not that you would know it, unless you went digging, given the lack of media coverage. The markets regularly hit record highs,...

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Posted by | October 23, 2019
Why I hate corporate

"You are so much easier to deal with Adam compared to big firms", so said a person I recently did business with.It got me thinking about the reasons why I...

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Posted by | October 14, 2019
Why you can lose money on property with 3% capital gains + 6% net yields

I got a big reaction, mainly of shock, when I said online today that it is possible to lose money on property even if you get 3% net capital gains...

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Posted by | October 12, 2019
Client review/Testimonial

Below is a client testimonial that came to me from one of my review articles. To whom it may be of interest: Are you worried that your retirement investments are...

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Posted by | October 11, 2019
Investing in ETFs for beginners

In the video below I speak about the different ETFs on offer in the market and whether index-linked ETFs are different to index funds. I also discuss why Vanguard's Founder...

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Posted by | October 8, 2019
Does a power pose and listening to techno turn you into a risk taker?

There is this idea that there is such a thing as a conservative, moderate and adventurous investor. This may be true to a certain extent, but is it the whole...

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Posted by | October 8, 2019
What if I retire 1 day after a Lehman collapse?

One of the biggest misconceptions and fears people have is that "markets might collapse 1 day after I retire". These worries seem to imply: We invest from our 20s until...

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Posted by | October 4, 2019
The biggest financial headaches for people living in emerging markets

About 50% of my clients are either expats living in emerging markets, or locals based in Latin America, Africa or "Emerging Europe". Whilst we all know that emerging markets are...

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Posted by | October 3, 2019
Client Interview

In the interview below I asked my client questions such as: Why he became my client?Why did he prefer dealing with somebody online compared to using the banks?And many more...

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Posted by | October 1, 2019
The man in the bar 5 years ago. One of my biggest regrets

I am going to tell you a story now, which haunted me for a while. Around 5 years ago I was living in South East Asia. I had just finished...

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The US S&P500 hit a record high yesterday. Not that you would know it, unless you went digging, given the lack of media coverage. The markets regularly hit record highs, you might be thinking, so it is hardly newsworthy.

That is 100% true. Mind you, markets regularly also fall in the interim, and yet every time that happens, we are greeted by sensationalist images and headlines similar to this:

We even sometimes get Presidential tweets when the Dow Jones falls 1,000 points (that's just a 4% fall by the way):

The media "wins" when we are distracted, fearful and distrusting. It got me thinking about something. A few days ago I was watching a BBC documentary, which was warning parents of teenage boys that porn and the internet in general, is causing problems amongst young men in particular.

Physical, emotional and even financial if they are paying money towards the habit. What does porn and the financial media, and general media, have in common?

Often they are focusing on instant gratification and shocking their audiences. No wonder "outrage porn" has become a word in the 21st century. Ryan Holiday's excellent book "Trust me I am lying" chronicles Holiday's time working as a media expert.

In it, he writes "It sometimes seems as if most of the news consists of outrage porn, selected specifically to pander to our impulses to judge and punish and get us all riled up".

You might say this doesn't affect investors, who can take things with a pinch of salt, but countless studies have shown the longer people watch negative media influences, the more likely they are to panic sell.

Why be optimistic about the future of the economy and its biggest firms, after all, if the world is about to end? I have no doubt that the results below, are partly caused by the media's influence on people's thinking:

That isn't to mention that numerous academic surveys have shown that more trusting people are wealthier on average, than distrusting individuals.

So do yourself a favor and switch off the financial media once in a while. It might do more for your finances than you might think.