Buy gold! Sell bonds! Sell in May! Watch out for inflation! All of these calls to action are nothing more than chatter from various communication sources collectively referred to as 'media noise.' An investor is well-served to turn down the volume on this noise and to tune in to the basics of mutual funds.
With the emergence and accessibility of Exchange Traded Funds (ETF's) and Sector Funds, investors are given enough rope to hang themselves when reacting to the whims of the market and the media noise that emanates from it. When industry sectors, such as energy and technology gain media attention, an unaware investor can make mistakes by buying or selling based upon current trends.
Focus on Your Personal Economy
As a mutual fund investor you are wise to focus on your own personal investment objectives and to be aware of the distracting nature of financial news. What happens in the world economies and financial markets does have an impact on the overall performance of your investments but the greatest impact on your mutual fund portfolio is what happens as a result of your actions.
Most mutual funds, especially stock funds, are intended for investment time horizons of at least 3 years and are ideal for holding periods longer than 10 years. World events happening today may have short-term impact on financial markets, and thus may impact your portfolio, but today's news has very little long-term impact.
Therefore, it is wise to turn down the media noise of today and tune in to your own investment objectives--focus more on your personal economy and less on the world economy.