More Straight Talk on Investing

20Navigating Distractions to Reach Your Destination

I've used several car and driving analogies in the course of this book. Let me roll out another with the hope that you don't tire of them. When you get behind the wheel, there are a number of things that can prevent you from reaching your destination safely and on time. You could encounter traffic, experience car trouble, or, heaven forbid, have an accident. Accidents happen, but some are a result of distracted driving—talking on a cell phone, texting, fiddling with the radio, or eating a fast-food burger. Similarly, distracted investing—being swayed by experts, falling for fads, or chasing performance—can be more than just speed bumps to reaching your investment goals, or as I will relate to you in Chapter 23, “Getting to Boca.”

One of the biggest distractions facing investors today is coping with the onslaught of financial information and news. We're all bombarded online, in print, on TV and radio, and on social media by information about investing and news coverage of the financial markets. Much of what's reported is either exaggerated, flat-out wrong, or simply not relevant to an ordinary individual investor. Even sophisticated investors can find it very tough to maintain perspective in the face of these distractions.

Every morning before I go on a run, I quickly catch up on the news and can't help but hear a report about what happened in overnight trading in S&P futures and on the Asian stock markets, along with the weather ...