Doc Eifrig: Two big reasons to ignore the fear in the markets right now

From Dr. David Eifrig in Retirement Trader:
Stop trying to “time” the Syrians…
Ever since the conflict in Syria escalated and increased the possibility of American involvement, markets have gotten skittish. They’ve fallen and bounced back nearly 4% through August and September, as confused investors try to anticipate how geopolitical theatre might influence their portfolios.
Here’s my advice: Stop it. Don’t listen to headlines, trying to decipher their importance to your stock investments.
I don’t want to dive too much into the politics of whether the U.S. should involve itself in another area where the factions have been fighting each other for thousands of years.
But I’d like to use this update and the market’s reaction to Syria to solidify some of the important lessons in investing.
First, no matter how hard you try to anticipate them, short-term market fluctuations are often unpredictable.
Second, you need to focus on sustained, real trends.
Here’s a timeline of what’s happened in Syria.
1.      New evidence emerges showing President Bashar al-Assad’s use of chemical weapons.
2.      Obama threatens intervention.
3.      Markets dive.
4.      Russia gets involved in an enforcement deal that could avert a violent intervention.
5.      Markets surge.
Now, not even a seasoned expert in Middle East relations could have predicted this series of events, never mind the market’s reaction to them. So how could some trader delving into Syrian/Russian relations for the first time expect to gain an edge?
And this is just the story line of one trading time frame. At any given time, different catalysts drive the market. Sometimes it’s the Fed or an election. Sometimes it’s jobs reports or European debt bailouts.
People who spend their lives studying each of those areas don’t know what will happen next. Neither do you. Neither do I. And neither do markets. In fact, I try not to pay attention to this stuff.
I occasionally get asked to talk on CNBC and Fox, and I have little interest. The anchors usually want me to make newsy things more newsy… and I couldn’t care less.
Here in Retirement Trader… we reject hype and fear-mongering. Instead, we rely on the facts to tell us what’s happening in the economy and the markets.
Crux note: Doc knows it’s impossible to predict the market’s next move… but that hasn’t stopped him from racking up a perfect track record in Retirement Trader. Over the past three years, he’s helped his readers collect profits on 129 out of 129 closed positions. Click here to see how he did it.
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