Being a wise investor entails staying current on current events and how they may affect the stock markets. In today’s world, we have access to news 24 hours a day via television, computers, and, most crucially, smartphones.

Even if your investments are concentrated in a single country, the globalized economy means that happenings in other countries might have an impact on the stock market. Alternatively, you may discover that local restrictions and reforms have an impact on much larger, national corporations. The challenging part is sifting through all of the accessible information to find the updates that are most relevant to your life.

Active investors must keep a close eye on their portfolio for changes. Passive investors or those with a longer time horizon, on the other hand, can afford to be more relaxed. However, all investors must conduct due diligence on a regular basis.

The five suggestions below will assist you in properly managing your time and assets.

Focus on Interest Rate and Commodity Trends

You don’t have to watch markets developments on a daily basis to be a good investor, but being aware of market patterns can help you avoid listening to “hot tips” or rumor mills throughout the day. A smart strategy to alleviate the stress created by investment rumors is to seek out the proper information right now.

Interest rates and commodity/labor costs are two key areas to monitor. Higher interest rates normally result in lower stock prices because as corporations spend more money on loan payments, their earnings suffer—and lower earnings equal lower stock prices.

Lower interest rates, on the other hand, can mean that both businesses and individuals will spend less on interest payments, resulting in greater bottom lines and higher share values. Knowing that most interest rate news is already factored into market pricing and understanding how it can effect future prices will help you sort out any gossip tips you may receive now.

Investors should monitor fuel prices and other commodity prices to see how they affect their assets. When crude-oil prices rise, for example, some industries, such as trucking, see their revenues plummet dramatically. Others, such as oil exploration businesses, benefit from increasing oil prices. Rising steel and lumber prices will harm construction and manufacturing businesses.

Rising labor costs will bury everyone, especially retailers who often recruit at minimum wage. You can stop the fear in its tracks if you know what’s in your portfolio ahead of time and change your portfolio accordingly.

Keep Abreast of Market Trends

You don’t have to watch CNBC all of the time, but you should keep up with the newest financial news and try to view finance-related videos at least once a week. The internet, especially social media, is another excellent resource for learning about investment methods and getting a sense of what experts are saying about the market’s expected path. To cut through the clutter, just make sure you understand which industries are in or out of favor, as well as the overall market health.

Read Also: What do I Need to Give Financial Advice?

Remember that geopolitical changes, as well as news of higher taxes or currency fluctuations, can have an impact on your portfolio holdings. This means that you should, at the absolute least, keep up with a weekly recap of developments. The idea here is to understand the big picture or trend and then adjust your portfolio accordingly.

However, try not to be swayed by the “news of the day” into making a judgment. In other words, financial commentary on television or online is frequently inflated to appeal to a bigger audience. So, attempt to separate the longer-term trends from the day-to-day rubbish used by financial media outlets to hype their broadcasts.

When watching or listening to financial commentary, you should always ask yourself, “How will this affect me or my portfolio?”

Review Financial Statements

This rule mostly applies to individual stock investors. Investors should read the Management Discussion & Analysis (MD&A) section of a company’s financial statements, as well as the 10-K, 10-Q, and proxy statement (all of which are filed with the SEC), to gain a better understanding of management’s perspective on the company’s opportunities and risks, as well as its recent performance.

When conducting this research, consider the following questions:

• Is management optimistic about the company’s future?
• Has it made any insightful remarks about future earnings potential?
• Is it pondering a large acquisition or asset sale that could impact earnings?
• Is the company’s credit in good or bad shape? Might that impact the future growth of the company?

All of these are topics that may be addressed in financial statements and are beneficial to the investor’s decision-making process. Be a detective, and try to cut through the public relations nonsense to find out what management is truly saying.

Because face-to-face meetings and some conference calls are highly scripted, especially given the growth in shareholder-initiated lawsuits, the written word is sometimes the greatest way for investors to acquire significant insight into the inner workings of a corporation.

Contact or Interview Funds or Firms

Trying to catch up with people in control of funds or businesses can be a full-time job, so it’s usually better to pick and select when you try these types of correspondences. Choose a time of year when they are slower or more available to speak with you, and once you get them on the line, ask them for information on where the market, a specific industry, or a stock is headed. Sometimes they will share crucial knowledge that you haven’t considered yet—or don’t have time to explore.

When speaking with these experts, attempt to ask open-ended questions such as:

• Where do you think the company is heading?
• What are the biggest risks going forward?
• What do you think Wall Street analysts are overlooking or undervaluing in regards to the company?

You may be surprised by the candor of the responses you will receive—at no real-time cost to you.

Determining when your information is most valuable might help you save time looking through reports and financials. Summer months are traditionally bad in the market, and acquired stocks may experience a decline. September and October have also traditionally been challenging months, and year-end tax-loss selling can further lower stocks. If you are confident that the stock you hold or desire to purchase is sound, you can proceed with your purchases; nevertheless, keep in mind seasonal variables while attempting to time a purchase or sale.

Being an investor does not include reading the Wall Street Journal every day or continually checking your mobile phone’s stock trading app. However, if you want to outperform the market in the long run, managing your time as well as your portfolio can make the most sense (or cents).