Ignore the News; Buy Value

This article originally appeared on RealMoney.com on Sept. 3, 2014 at 3:00 p.m. To read more content like this AND see inside Jim Cramer's multi-million dollar portfolio for FREE... Click Here NOW.

We live in a complicated, fast-moving world. Information and news fly at us pretty much all day. For those of us who are investing our cash in stocks and bonds, it seems that market-moving news in the form of government and corporate announcements are hitting the news wire every minute or two. This year, the geopolitical situation has been especially prominent, with markets being tugged to and fro by news, from the Middle East but especially from Ukraine. In the short run, they can move markets around a bit. Trying to keep track of it all can be incredibly stressful.

I am something of a news junkie by nature. If my wife is not in the room, the TV is on MLB, The NFL, Turner Classic Movies or the news. The set in my office is always on either the financial news networks or one of the news channels. I read two actual printed newspapers a day and three or four on weekends. I stay on top of current events, and can sit around talking about them for hours. However, I have learned over the decades to ignore them when making investment decisions. I know some people that trade the headlines (I am convinced the reason Vladimir Putin is not worried about sanctions is that he is trading S&P futures in advance of his own pronouncements and troop movements, and making a fortune), but it is really an exercise in futility for most of us.

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