Combating stock market noise with facts

As breaking news on social media hits us at the speed we'd like, it's harder to block stock market noise. Whether it's Twitter or 24-hour cable news, today's financial news is almost instant compared to 30 years ago, and 30 years ago you probably wouldn't hear it until the next day.

In Jason Zweig's book “Your Money and Your Brain,” he asks powerful questions to keep your feelings from overpowering the truth. Instead of listening to and reacting to current financial news, stop and think if your financial situation has changed other than the price of your investment. These may include:

1. Consider whether your reasons for investing in this investment are still valid?

2. Just a question, if I really liked this investment and bought it at a higher price, now it's cheaper, shouldn't I like it more?

3. Investigate, what other evidence do I need to evaluate to determine if this is really bad news? Has this investment dropped that much before?

4. If that's the case, would I do better if I sold out or bought more?

When the stock market is very noisy, what should you do to prepare?

To successfully weather a bear market, you need a long-term strategy. Cliché? Of course, but considering where you are in your life right now is a guide to developing a treatment plan for short-term illnesses in your market.

If you're already 20 or 30, don't worry; there's still plenty of time left. At this age, investment choices are still important, but far less important than how much you actually save. The average cost alone will help you steadily take advantage of falling stock prices, which is an amazing long-term sale.

If you're 50 or 60, it's far more important to focus on your overall investment strategy. How does your asset allocation match your retirement schedule? For many in this business, the return on investment will be greater than the amount you save each year. You'll also face a range of return risks, which could eat up a large portion of your retirement without a strategy.

At this point, professional help can help you respond accordingly to market events and, more importantly, act as a responsible partner. Having a buffer between your mood and the market is probably the most important financial decision you can make.