Information is Not Knowledge


Presented by the Hardee Investment Group and RBC Wealth Management-

For many years, when you did research on a topic, you went to the library, checked out books and read them. Today, you use your phone or tablet, Google or the Internet where you find a plethora of information and opinions. Some of those are accurate, but many are not.

If it is a current event, every TV network rushes to get the scoop and, in the name of being first, it is not always researched or accurate. Our human senses and emotions are being overwhelmed by a constant bombardment of information. This can have serious repercussions on how you invest. The most recent Hamas/Israel and Ukraine/Russian conflicts are examples of instantaneous news, as is the Ebola outbreak in Africa. It’s in your face and very scary. But what does it mean, and how does it affect investments?

Throughout the years, there have been market conditions that could have negatively impacted an investment portfolio: the 2012 U.S. fiscal cliff and debt downgrade, the 2011 European debt crisis (Spain, Italy and Greece), the 1990 Iraq invasion of Kuwait, the 1987 record setting market decline, the 1982 worst recession in 40 years, etc. You get the picture.

The key to investing is to develop a filter that can distill this information and turn it into knowledge. How do I distill what’s happening in Russia/Ukraine and apply it to my investment strategies? Does that mean Russian oil sales drop? Does that affect oil service companies? What metals do they produce? Might those prices increase? Does that cause more energy companies to look at the U.S.? If so, does that increase the amount of oil and natural gas produced in this country? How does that affect our industries such as chemicals, airlines and manufacturing?

The key to successful investing is to remove the emotion from the equation and replace the barrage of information with knowledge. Information is short term. Knowledge is long term. Some might even say knowledge is power. Let us help you distill that information into actionable knowledge that can be practically applied to your investment portfolio. Call 713-853-0879 or visit www.HardeeInvestmentGroup.com to learn about our approach.

 

This article provided by H. H. “Will” Hardee, AWM of the Hardee Investment Group and a Financial Advisor and Senior Vice President at RBC Wealth Management in Houston, and was prepared by or in cooperation with RBC Wealth Management. The information included in this article is not intended to be used as the primary basis for making investment decisions nor should it be construed as a recommendation to buy or sell any specific security. RBC Wealth Management does not endorse this organization or publication. Consult your investment professional for additional information and guidance. RBC Wealth Management does not provide tax or legal advice. RBC Wealth Management, a division of RBC Capital Markets Corporation, Member NYSE/FINRA/SIPC.