I have always said that it is not bear markets, crashes or market sell-offs that destroy investors' portfolios and life savings. It is the investor not being prepared for these events that is the culprit!
But, how do you prepare for what's ahead in the markets and, in turn, your money?
Not only do you have to consider the quality of the source of the information you gather, but you must be on high alert to really know what you're reading or hearing ... to find the convoluted, missing or even buried messages that can help or hurt you as you make your next move.
Time to Tune in...
As I contemplated what we we would discuss this week here in
The Tycoon Report -- sitting on the couch on Sunday evening, computer on my lap -- an Associated Press article on Yahoo! (Symbol:
YHOO) caught my eye: "More Americans Expected to Travel for Thanksgiving."
Since I was not yet inspired to write, I read the article. Suddenly, there it was … our topic. Not just because it is timely, with Thanksgiving just a couple of days away, but because of the real story hidden behind a seemingly innocuous headline -- data upon which you might very well be making decisions when it comes to your investments.
And with the importance of economic news, especially now, this is the right time to tackle the dualistic message of the news.
By that, I mean that there may be two messages that can be legitimately derived from a news report.
The Truth is There, if You Look for it
There are several factors for investors not being prepared for events that impact their money, and the article I read had those factors in it.
Investors not only need to keep up with the news, but also need to know how to read it.
Using this article, we will walk through the process of reading the news -- being on the lookout for the flaws that exist in the reporting of the news, and the presentation of conclusions that often lead to the building of a false sense of security/doom in the general public.
Let's start at the beginning, the headline.
When you read the headline "More Americans Expected to Travel for Thanksgiving," you get the feel of optimism.
This article starts on a positive note right from the headline. Things are looking up!
Problems can start right here.
