The only part of my article you’ve read thus far is the title. Stop for a second and think about how it made you feel. Did it grab your attention more than other titles in this newsletter? Did you feel your heart rate rise slightly? Did you feel a tinge of anxiety or anxiousness? Was there concern for your situation?
Imagine the title was “Something Very Good is Coming!” Whether you recognize it or not, psychological studies consistently show that your reaction to negativity has a significantly larger effect on you than positivity. Even the most positive people among us are drawn to negative news.
This is because we all have what psychologists call “negativity bias.” It is a safety mechanism that is inherent and subconscious. We are wired to pay more attention to bad news. We process negativity more thoroughly; we describe it in more precise language; and we remember it for a longer period.
The media understands our attraction to negativity as well as anyone else. They consistently use it to hook us. They use our own fear to push their agenda and make a profit.
My objective here is to remind you that the world is a wonderful place and that the future is bright. There has never been a better time to be alive. There is so much good, and it greatly outweighs the bad. Modern medicine and technology have exponentially improved over time. Extreme poverty has fallen. World hunger is shrinking. Life expectancy is rising. Long-term homicide rates are significantly lower. Education is on the rise. Equality has never been closer. The list goes on.
There is always something bad coming, but there are even more great things coming. Maybe our presidential candidate will win, and perhaps they won’t. Maybe economic recession hits, and maybe it doesn’t. Maybe global unrest increases, or possibly it decreases. Regardless, there is no better time to be alive.
Don’t let negative news take you away from what you love and those you love. Don’t let it stop you from achieving your goals, hopes, and dreams. Don’t let it prevent you from making the world an even better place for your children and your grandchildren. And don’t let it sway you from making wise financial decisions for your future.
Fear is an investor’s worst enemy. Markets have an incredible track record of long-term growth, despite all past negativity and fear. It is a mistake to think that “this time is different.” Markets will continue to rise, as will the sun. Both life and the future are beautiful.
