Practicing strategic ignorance is about selecting which information you pay attention to, and which information to ignore.
It becomes an essential quality during periods of non-stop talk about COVID-19, infection maps, shelter in place, and social distancing. It is also a great characteristic to develop when markets are volatile.
We recently experienced a significant selloff and seen many drastic moves in the market on a daily basis. These types of moves can unnerve any investor and influence us to abandon our well-thought plan.
No one strategy always works. Every strategy, even long-term profitable investments, will experience some period of time where the performance is poor. If we are looking often, we are witnessing a lot of the uncomfortable volatility. That may influence us to sell what may have been a very profitable investment/strategy.
Not all information is beneficial for us. Let us be selective in what we pay attention to. Ignore that which is detrimental to making thoughtful decisions and rely on your plan to be your guide.
By Marcus E. Ortega, ChFC, RFC | Investment Advisor Representative | CEO of Mosaic Financial Associates & Orthopaedist Advisory Group | Securities and advisory services offered through Cetera Advisors LLC, Member FINRA/SIPC, a broker/dealer and a Registered Investment Advisor. Cetera is under separate ownership from any other named entity.
©2020 The Behavioral Finance Network. Used with permission.