Investor Discipline in the Digital Age…
Ever feel like you just can’t escape the news? It’s everywhere and it finds you. Buzzing in your pocket, from debates in every group chat to popping up when you’re scrolling on Twitter, Instagram and even Tik-Tok.
It’s crazy to think that not too long ago, investors had to wait until the next morning’s newspaper to find out what happened in the markets. You might have even gone a whole month without knowing how your investments were doing, creating a natural buffer against emotional decision making because less panic meant fewer impulsive “sell everything!” moments.
The New Investment Environment:
What once required effort to discover now requires effort to avoid. Minor market fluctuations are becoming seemingly urgent crises. "Markets in turmoil" has become the default headline, regardless of whether the decline is 2% or 10%.
Patterns are beginning to show underperformance for investors responding to short term movements in response to news compared to those who trade less.
Strategies for Today's Investor:
So, the question is… how do we stay disciplined as investors in a world where information is constant, and sometimes overwhelming?
Here are a few strategies that have proven effective for our clients at Engage
· Create intentional information boundaries. Instead of checking your portfolio every time the news gets dramatic, try setting a schedule—maybe once a quarter, or for long-term investors, an annual review may be sufficient. Unless circumstances have changed significantly, that’s usually enough.
· Focus on the fundamentals, not the prices. The real value of your investments isn’t in the day-to-day price swings, it’s in the long-term earnings, dividends, and strength of the companies you own. When markets get shaky (and they will), it helps to zoom out and remember you are invested in companies that are building, growing, and reinvesting in themselves - so even if prices bounce around, the underlying trajectory remains upward.
· Don’t lose sight of your why. The best investors have a clear reason behind why they are investing in the first place. Normally, it is about family security and income generating capital for retirement. During times of market turmoil, reconnecting with this purpose provides clarity that no headline can disrupt.
· Patience and discipline. Regardless of the era, patience and discipline have always been the defining characteristics of successful investors. Investing isn’t a sprint, it’s a marathon. Staying patient and focused over time is what really pays off.
What’s really empowering is realising we get to control how much of the nonstop news cycle we let in. Just because the world’s screaming for attention 24/7 doesn’t mean you have to listen. Turning off notifications, setting “news-free” days, or cutting back on financial media can give you the mental breathing room to make smarter, calmer investment decisions.
As your financial advisers, we’re not just here to manage your assets, we’re here to provide peace of mind. We think of ourselves as a buffer between the noise and help you stay on track for what really matters - your long-term financial goals. In a world of increasing complexity, there’s real power in keeping things simple and staying steady.