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Millions of investors are complaining about the overwhelmingly negative impact that trade war tantrums are having on their portfolios. Yet, very few do anything about it.
Not that they don't want to, mind you.
They can't. The digital world we live in makes it nearly impossible to distinguish truly important and potentially very valuable information from trivia data. So, they wind up lurching from one investment to the next, often with nothing except losses to show for their effort.
Savvy successful investors, though, have a secret.
Here's how to escape the cycle – and a stock to help you do it profitably…
The Internet was supposed to dramatically enhance our lives by connecting humanity and, among other things, allow us to become better investors. The presupposition was that more information would contribute to better decisions and bigger profits as we learned to "multi-task."
That's not happening.
Instead what you have is a constant mishmash of data that splits our attention. Making matters worse, much of it is wrong.
In fact, multi-tasking is a profit killer.
A 2009 study from Stanford University's Communication Between Humans and Interactive Media Lab found that heavy Internet users who constantly multitasked while watching TV, reading, surfing the net, and Facebooking scored significantly worse on cognitive tests than those who didn't.
Again, proponents said that didn't matter. "We" – meaning society as a whole – would mature as we grew used to the newly found digital world we live in. We'd learn to control the intrusion they pontificated.
In fact, the problem is getting worse.
Silicon Valley venture capitalist Mary Meeker found that the average user spends nearly 3.3 hours a day on their smart phone, and that digital media usage topped 5.9 hours a day last year.
Figure 1 Kleiner Perkins
A 2018 study from Ofcom, the UK's telecom regulator, found that people check their smart phones an average of once every 12 minutes while awake. A jaw-dropping 71% said they never turn their smart phone off and 40% said that they check 'em within 5 minutes of opening their eyes.
The problem is now so bad that there's even a name for this kind of behavior – CPA, which stands for continuous partial attention. Coined by Linda Stone, a former Apple and Microsoft consultant, it denotes a state of near constant digital alertness.
Which brings me full circle.
People with CPA are constantly scanning for new stimuli, which promotes a state of addiction and scanning, rather than giving their full attention to anything.
5G Is Coming: The Tech Breakthrough of the Century Could Rest on This $6 Stock – Get All the Details Here
Everything essentially becomes a distraction because people cannot control their attention which means they are far less likely to distinguish critically important information from trivial data.
That's fine if you're talking about memes like "Grumpy Cat" or the "Most Interesting Man in the World," but the same behavior will doom your retirement if you don't get it under control.
Take the trade war tariff tantrums gripping today's markets, for example.
Investors are caught up in a constant cycle of news related to everything from the President's latest tweets to who said what to whom in China. They buy one moment and sell the next, while digging themselves into an unprofitable hole, and the markets reflect that behavior.
There's an easy solution, though.
Instead of asking which companies China's trade war tantrums will clobber and cowering in fear, try focusing on which companies are going to come roaring out of the basement when there's a deal. And this is the best stock to do just that…
This Is the Best Stock for Trade War "Tantrums"
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean, and he's also the founding editor of Straight Line Profits, a service devoted to revealing the "dark side" of Wall Street... In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.