There are certain traits that all successful long-term investors have in common.
One of the most overlooked is the ability to ignore the financial media noise and instead focus on the big picture. Just as important is the ability to take a news story and uncover the truth behind the headline.
That’s what we’ll do in today’s new episode of MoneyLine. I take a look at the current news flow and discuss why it’s so important to determine how it will affect specific investments.
Let me give you an example …
Last night, China reported an 18.3% increase in its gross domestic product (GDP). That number is insanely high, but according to some headlines it was actually disappointing because it came in below certain estimates.
Does it really matter if the growth was 16% or 20%? Or maybe somewhere in the middle?
When you understand the big picture, the answer is very obvious — absolutely not! The only thing we need to know is that one year after a global shutdown, the world’s second-largest country is roaring back strong.
In March 2020, we had no idea what the future held. But today, the numbers show us how far the economy has come in a little more than a year.
So here’s the bottom line: The headlines are often misleading.
Successful long-term investors not only understand that … they take that information — or misinformation — and use it to their advantage. So that’s what we’ll do. In the podcast, I share a few Chinese stocks that I feel are set to outperform thanks to the growing economy and strong GDP number.
A few other headlines I dive into include the much hyped and highly important Coinbase (NASDAQ:COIN) IPO, Volkswagen’s (OTCMKTS:VWAGY) sales surge in March, more SPAC rumors, two commodities soaring, and more.
And be sure to tune in and hear my rant about long-term investing. What’s a Friday without a good rant? If you’re one of those folks who obsesses about your stocks … it might be time to consider a change.
On the date of publication, Matthew McCall did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now.