"Watching bad news should come with an investment health warning attached. It can cause you to exit the share market at the very time when the biggest rise in values often occurs. Conversely, if you chase share price gains after a prolonged period of good news, you run the risk of buying when most upside has been realised. The lows occur when the news looks bad, and the first upward movement from the basement is often the biggest, with the best chance of boosting your net worth," she says.
Currently, the markets are experiencing some uncertainty and the media have highlighted several worrying developments, including:
"You can't blame the media," says Warburton. "Editors know bad news grabs attention. That's why they provide so much of it. But an investor's perceptions can be skewed by excessive negativity. A more balanced approach, with a tilt toward long-term optimism often works best for the strategic investor looking to build a good nest-egg 10, 15 or 20 years down the line."
She says positives that often go unfeatured in news broadcasts include:
"Tough-minded optimists with a long-term view almost invariably grow more wealth than skittish investors. As wealth managers and advisers we often confront the unfortunate consequences of limited commitments to so-called risk assets like equities. In fact, over a long enough period well selected equities have by the best chance of building wealth and providing for a comfortable retirement. The news people should focus on is that if you want to grow your investments you must grow a thick skin and shrug off the nightly diet of doom and gloom," Warburton concludes.
