The 24-Hour News Cycle moves from Impeachment to COVID-19 to the Primaries – What’s next?
Provided by Taylor McClish
In recent weeks,
we’ve seen several major stories in the news. On the political front, in
addition to the arrival of the presidential election through the 2020 caucuses
and primaries, we have just experienced the third presidential impeachment in
American history. In international news, the latest coronavirus outbreak has
hit China, now referred to as COVID-19, leading to closed borders and
heightened screening at hospitals worldwide.1
It’s not so much
the facts of what’s going on that are unusual – none of these matters are
unprecedented – but the way that they are reported in the media can be
alarming. Even frightening.
How
might this affect me? When major events make headlines, it’s
easy to put yourself in the picture. Knowing, as well, how such events might
affect the financial markets, it’s also easy to wonder how your investments and
retirement strategy might fare.
The truth?
Political ups and downs, virus outbreaks, and other circumstances might lead to
some short-term volatility on Wall Street. But it’s important to remember two
things: 1) Your portfolio is positioned to reflect your risk tolerance, time
horizon, and goals. 2) The way we experience news has changed over the years,
and not all of it for the better.
Never-ending
news. On June 1, 1980, businessman and broadcaster Ted
Turner debuted Cable News Network (CNN), the world’s first 24-hour television
news channel. In the four decades since, other similar channels have emerged.
Collectively, they changed how the world experiences news. Notably, it was the
dawn of the 24-hour news cycle.2
Before 1980, news
was very different. Major newspapers might have published several editions
during a day, but most areas only had a morning or evening edition. Radio might
offer news break updates at the top of the hour, with news programs in the
morning, afternoon, and evening. Television followed a similar pattern.
The never-ending
news cycle means that news organizations have an interest in continuing to
report on the same news story even though little or nothing has changed.
Twenty-four hours is a lot of time to fill, and they need ratings in order to
be of value to advertisers. While this doesn’t necessarily mean that the news
has become inaccurate or sensationalistic, it might be perceived as
repetitive.
It’s also
becoming ubiquitous. With our smartphones, we’re often receiving news updates
immediately throughout the day.
Keep
informed, but don’t be rattled. Your investment and
retirement strategy, which you have designed and put into place with your
trusted financial professional, has considered big news events, both major and
minor. Your professional knows the difference between something that may be a
minor force in your financial life and something that might require you to make
some changes. A good strategy gives you room for market changes that might see
reactions that last a few days – even a few years. Staying the course is often
the smartest move, partially because you aren’t reacting immediately to a dip,
and you might benefit from a potential recovery.
So, keep
yourself informed, but if you get too worried, have a conversation with your
financial professional. They can help you understand what the news means for
your financial life and offer you the context you need to remain confident in
your strategy.
Taylor McClish may be reached at (503) 239-3060 or Taylor.McClish@cunamutual.com
This material was prepared by MarketingPro, Inc., and does not
necessarily represent the views of the presenting party, nor their affiliates. This
information has been derived from sources believed to be accurate. Please note
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are not illustrative of any particular investment.
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Citations.
1 - sciencemag.org/news/2020/02/bit-chaotic-christening-new-coronavirus-and-its-disease-name-create-confusion
[2/12/20]
2 - history.com/this-day-in-history/cnn-launches [2020]