Golden Opportunity?Submitted by WWK Wealth Advisors on March 11th, 2013
Not that many months ago, within approximately a week of each other, two different people contacted me about the idea of gold. One was adamant about buying, with 100 percent of all they had, while the other had wondered if it were a good time to sell all the gold they had. I think nothing describes the conflicting messages we receive as investors as much as this. How do we wade through all the messaging and information available at our fingertips in 2013? What’s a golden opportunity, and what is fluff and perhaps, bluff?
At the time of this incident, as still seen quite often today, there are many advertisements for gold, using a fear-based message quite often. It’s completely understandable how this can motivate. Could they be right? Are we ignoring history if we don’t listen? A few other lessons in history will help put this, and any confusing message, not just gold pitches, into context. First of all, let’s look at the motivation of these altruistic messengers!
- Advertisers are motivated to sell products, by definition. They do not exist to get the facts or provide the most objective truths, nor to tell you what’s in your best interest; they tell you what’s in their own best interest. Sometimes these interest may actually agree, but just know that’s not their motivation.
- Financial TV networks and the media are movitated by ratings-period. If there isn’t news, make some! It’s amazing how a hum-drum day in the markets can be portrayed with more drama than a soap opera, complete with customized graphics, and themes for the day.
I am always skeptical of the message to chase returns, or sell based on short-term downturns, or to react emotionally in making investment decisions—that’s usually bad “news.”
At WWK Wealth Advisors, we work to help you filter out the murky messaging that inundates us all, in order to guide you to make smart financial decisions. We think that’s how it should be. Stay tuned!