The news can be confusing for investors Money is important

We live in a modern age with a 24/7 stream of news from our smart devices — and that can be a problem.

Many headlines paint a bleak picture, but looking at the world through the lens of investment opportunities can be very optimistic.

The US stock market, as measured by the S&P 500 index, has a 100-year history. In three out of every four years, investors made money by owning the stock. Investors lost their money only once in four years.

During these years of financial success, there would have been countless incidents that turned out to be negative. Investors who remained positive and continued to hold stocks were very successful.

The value of stocks is determined mainly by how much profit they earn. Profit forecasting means looking into the future for many years. Investors are more focused on the long term.

News focuses on problems of the day and in most cases that do not affect the long-term profitability of the company.

Daily news can be boring. Investment prospects can be promising.

Peter Watson, Watson Investments MBA, CFP®, RFP, CIM®, FCSI presents his weekly financial planning column, Dollars & Sense. He can be contacted at www.watsoninvestments.com.