Thank you for the many responses I received from my recent article on AI. Obviously, it’s a topic of interest to many at this time.

At the time of writing this, the US has increased global tariffs to 15% on the back of an adverse legal decision, interest rates have increased by 25 basis points, inflation remains sticky, and a US Carrier force closes in on the Middle East, threatening war. There is no shortage of topics to write about.

Which leads me to the topic this week – the issue of increasing noise and increasing distraction. The noise and distraction are the product of device and media bombardment, where getting “eyes on screens” is the aim, regardless of accuracy. There is no doubt that society as a whole is more anxious, whether it is weather forecasts that always seem extreme or geopolitical and market commentators who seem to predict doom and gloom.

Reporting from media sources has become questionable; the term “fake news” is thrown around, and with the rise and rise of social media, the quality of investigative journalism seems to be in decline.

Hence, short-termism and non-tolerance prevail.

A good example is the reporting season. The reporting season has been in full swing, and companies that miss their targets by even a slight margin or where there is a sniff of bad news are punished mercilessly (Xero, CSL, Promedicus). Correspondingly, you have seen Bitcoin fall 49% since October 25, while commodities- silver move up 129% in December 25 and retreat 30% in February 26, gold up 22% in January and down 14% in February. Uncertainty and volatility reign in the current environment.

So, what do we do and what should we do?

The answer is nothing if you have worked through the following.

If you have worked through a long-term strategy, your risk tolerance sits comfortably with you, and you have the financial and other capacity to weather storms, then you need to hold the line. This means getting off your investment portal and refraining from watching the daily volatility. It also means switching off social media and switching on to what’s important to you, and it shouldn’t be the daily ups and downs of investment values.

In fact, investments are best viewed with the fullness of time over rolling periods. It’s just noise and, along with the continuing political dramas, only serves to create anxiety. Set your plan, set sail, hold the line and focus on the important things in life.

Why is this so? It’s because of the work of the French mathematician Blaise Pascal, who in 1654 built “Pascal’s triangle,” founding modern probability theory, which remains in full use today.

An understanding of probability theory and the fact that all investments will revert to their mean over rolling periods is what separates investors from speculators and creates certainty in an uncertain world. If you’re not familiar with this, it’s worth a read.

If you understand and believe in this, then it’s just noise, and your quality of life will be enhanced by greater certainty. The article is written entirely by the author, and no AI has been used; hence, it presents my unfiltered opinions on how to behave as an investor and live a quality life.