It's fun and easy to focus on macro stuff - we read or watch the news and see what's happening in DC and around the world. The media loves to write about such things because it gets readers/clicks and it's something everyone is going to find relevant (as opposed to micro stuff like your local real estate market, which is not important to 99.99% of the world).
In reality, however, the micro stuff is more important most of the time. Not all the time, of course - sometimes macro events can have such large (usually negative) impacts that they outweigh anything that is happening at the micro level. In these cases, you hopefully have built a strong and resilient existence to weather any storms that may have come your way.
The micro things are your day-to-day habits and your ways of living in this world - they may include things like
One would be well-served by focusing on the micro stuff while ensuring they are well-protected from significantly adverse macro events.
The uneven benefits arising from political certainty: A bad political environment will hurt your portfolio, but a healthy and beneficial political situation is only a prerequisite for investing success
A lot of people in finance and the investing world love to talk about politics and the geopolitical environment. They say how important it is for there to be a stable geopolitical environment for economies to perform well. This is true, but it leaves out too many vital details - a more useful understanding can easily be obtained.
Geopolitical certainty is less a beneficial item for investing and economic success - it's more of a prerequisite for a stable economy and an attractive environment for business. Geopolitical certainty is more of a necessary condition for good things to happen, NOT a sufficient condition. This means you need political certainty and a healthy geopolitical environment for business and the economy to be strong, BUT having a great political climate won't really help your portfolio.
The reason for this uneven distribution of benefits is because stocks aren't valued based on the geopolitical landscape - they are valued based on anticipated future cash flows, discounted at appropriate discount rates. Politics can influence this a bit, but far more so in the negative direction than in the positive one.
So, don't overdo it on how much you focus on politics, the global political landscape, and how this might impact your portfolio. A better approach is to monitor for signs of a terrible geopolitical situation on the horizon while prudently picking excellent investments to put your money in.
Focus on primary news sources when consuming news - don't let others do the filtering and thinking for you
We have come to the point of absurdity in terms of news consumption - far too many people consume news from secondary (or tertiary) sources instead of going directly to primary sources. This is tragic because primary sources are more easily-available today via the internet than ever before.
What are primary news sources?
Primary news sources include the following:
There are implicit (sometimes explicit) biases in secondary and tertiary news source
Secondary and tertiary sources take primary source information and do things to it - this may include analysis, synthesis, etc., but, all secondary and tertiary sources include something extra. That extra stuff can be incredibly useful and interesting, but it is also removed from the primary source in some way.
In today's world, a lot of news-related secondary (and tertiary sources) still provide interpretation, summarization, and synthesis. However, they also very often add in heavy doses of bias. This bias may be implicit or explicit, but it seems to be ever more present as Big Media can leverage Big Data and create far more granular approach; social networks like Facebook and Twitter do this too. Where 25 years ago, everyone tuned in to the same few news channels on TV, today, every single person in the Western world can have a customized/tailored Facebook or Twitter feed. These feeds can become deeply biased as a result of tech firms' attempts to get more eyeballs for longer periods of time.
Watching primary news can seem very strange to a person who only consumes secondary and tertiary news sources. The initial reaction can vary, but it is often one of surprise at how different and "more real" consuming primary news it. People are surprised at how the world really is vs. how they typically see the world presented in heavily-biased secondary and tertiary news sources.
Primary news sources lead to clearer perspectives on what really is happening in the world
To have a clear mind and understand the world, one can't rely only on secondary and tertiary news sources. Especially terrible is relying on free secondary and tertiary news sources - in these cases, the reader is, in fact, the product and the source of the secondary or tertiary news have no real responsibility to the reader (either from a moral, fiduciary, or economic perspective). This, however, is a topic for another time.
And now, given the rise of cyrptocurrencies and crypto assets to quasi-mainstream financial assets, we're dedicated to providing quality, relevant, and interesting material on cryptocurrencies and cryptoassets. Articles on Bitcoin, Ethereum, Ripple, Cardano, and many more cryptocurrencies and cryptoassets can be found on Pennies and Pounds - all that in addition to a plethora of information on what cryptoassets are, how the entire crypto industry came to be, blockchain/immutable ledger technology, mining, proof of work, proof of stake, and how to prudently invest in crypto if you are so inclined (based on your risk tolerance and ability to withstand the volatility that will come with a crypto portfolio).