How to tune out market noise

The markets move fast. Headlines shift by the hour. One day there's optimism, the next some guy on TV is yelling about a downturn — yet somehow, investors are expected to stay calm and make smart decisions.

That constant stream of updates can be market noise: short-term swings driven by news cycles, speculation and real-time reactions. It may feel urgent, but most of it doesn’t reflect the long-term direction of your investments.

The real challenge isn’t understanding what’s happening. It’s knowing what’s worth paying attention to — and what isn’t.

What is ‘market noise’ in investing?

Market noise is all the short-term ups and downs in the market that may feel important in the moment but, when viewed from a long-term perspective, usually aren't.

It shows up as sudden price swings, dramatic headlines, or sharp moves that don’t necessarily reflect an investment’s long-term prospects.

READ MORE: Riding the highs and lows of the market

Not every movement means something has fundamentally changed. A company doesn’t become stronger or weaker overnight because its stock dips for a day. And the economy doesn’t go into recession with every bad headline.

That’s the difference between noise and real trends. Noise is short-term and reactive. Real trends are slower, steadier and tied to what’s actually happening under the surface.

The goal isn’t to avoid market noise altogether. It’s learning to recognize it, so it doesn’t pull you off course.

Common sources of market noise

Market noise doesn’t just strike out of nowhere. It’s usually tied to something attention-grabbing at the moment. Here are a few examples:

• Daily news headlines and market speculation. Markets may react quickly to news—sometimes too quickly. Headlines are designed to grab attention and get clicks, not provide context. A splashy story might move prices for a day or two, then fade out.
• Earnings announcements. Small surprises can trigger big reactions, even if the company’s overall health hasn’t changed.
• Social media hype. Trending stocks and viral “hot tips” can create short-term surges that may be disconnected from reality.
• Global events. Political developments, conflicts or natural disasters can shake markets in the short term. Some have a lasting impact but many may not.

Why ignoring market noise is important

Market noise isn’t just distracting. It can get in the way of growing your money.

A better approach is to focus on what truly builds wealth over time: compounding, where your returns generate their own returns. But that only works if you stay invested.

Jumping in and out of the market, or reacting to every dip and headline, can stunt that growth and make it harder to reach your goals. Here’s what staying the course can look like:

Trying to predict every move is difficult, even for those who may claim to know better.

As billionaire investor Warren Buffett said, “I don’t think I can make money by predicting what’s going to go on next week or next month. I do think I can make money by predicting what will go on in the next 10 years.”

Key takeaway: Market noise is temporary and unpredictable. Real growth takes time and patience.

Common traps investors fall into

Understanding market noise is one thing. Avoiding it is another, especially when human emotions can get in the way.

Panic selling

When markets dip, it can feel like things will only get worse. Some investors sell to “cut losses” — only to miss the recovery that often follows.

That can often lead to selling low and buying back at a higher price. It also means missing the market’s best days, which tend to happen unexpectedly¹.

Chasing trends

A stock is suddenly everywhere — in the news, on social media, in WhatsApp chats — and it feels like you’re missing out. That FOMO can drive investors to buy into the hype, often right as prices peak.

We’ve seen it before — from meme stocks and cryptocurrencies to trending ETFs that surge and cool off just as quickly. By the time many investors jump in, prices are already high. When the frenzy fades, prices often follow.

Chasing past performance

What performed well last year won’t necessarily perform well next year. For example, the ARK Innovation ETF famously surged in 2020, then plummeted by 2022, leaving late investors with losses.

A strong strategy isn’t built on last year’s winners. It’s rooted in balance and consistency.

Timing the market

Trying to catch every rise and avoid every drop is like playing goalie against the entire market — eventually, something gets past you. In fact, some studies suggest that many investors who attempt to time the market underperform when compared to investors who buy and hold.

Even experienced investors aren’t immune to this pitfall.

“In 2021, I earned a measly 6% in a year where everything — absolutely everything — went up, and putting my money in a global ETF would have scored me 23.5% in sterling,” said finance professor Joseph Taylor in a 2025 Morningstar article. “Why did this happen? Because I behaved like an idiot, traded too much, and racked up massive brokerage fees.”

Overtrading

Checking your portfolio daily and reacting to every move might feel productive, but it’s usually not. Why? Because the more closely you follow the market, the more tempted you are to react to every headline or short-term swing.

It’s also easier than ever to fall into this trap. With DIY investing platforms, you can check your portfolio, transfer funds and make trades in seconds — no phone calls, no friction, no second thoughts.

A U.S. robo-advisor, Betterment, saw this first hand. During downturns, it sent emails urging clients to stay calm. Instead, those messages made some investors more anxious and prone to poor decisions.

The takeaway: When it comes to investing, more activity doesn’t guarantee better results.

Trying to manipulate the market

Some investors don’t just attempt to time the market — they try to move it.

We saw this during the GameStop frenzy in 2021, when traders in online forums like WallStreetBets on Reddit encouraged one another to buy shares and drive prices higher. As prices climbed, more people jumped in. When prices eventually dropped, many late investors were left with losses.

Moments like this can make it feel like the market can be gamed. In reality, these situations are rare, unpredictable and hard to repeat.

Case study: when noise drives decisions

In early 2020, the COVID-19 pandemic hit and markets reacted fast. Countries shut down, businesses closed, and uncertainty spiked. From December 2019 to March 2020, the U.S. stock market fell by about 20%. Many investors reacted by panic-selling.

Then, as governments stepped in and expectations shifted, markets rebounded — fast. From its March low, the markets surged, with the S&P 500 index up more than 60% by the end of 2020.

The takeaway? Don’t panic and sell during a downturn. No one can predict how quickly markets will recover.

Market downturns are a normal part of investing, and history shows that markets have consistently recovered over time.

Strategies to tune out market noise

You don’t need a crystal ball or hot stock tips. You just need a system.

Create a plan — and stick to it

When markets get shaky, your financial plan and your household budget can help keep you steady. Set your goals — retirement, a home, long-term wealth — and a timeline.

Tangerine’s Wealth feature provides clients with a big picture overview of their finances, covering assets and liabilities, portfolio breakdowns, and performance trends.

READ MORE: Celebrating inchstones can help you reach your money goals

Don’t time the market

Trying to beat the market is a bit like banking on a win at the slot machine—you might get lucky, but it’s not a strategy.

Know your risk tolerance

How comfortable are you with market ups and downs? Your portfolio should reflect that.

If a downturn makes you want to sell your investments and hoard cash like toilet paper in the early days of the pandemic, it may be worth talking to an advisor to reassess your risk tolerance, taking into account your investing goals and time horizon.

On the other hand, if you’re years (or decades) away from reaching your financial goals and can ride market volatility without feeling queasy, you might consider updating the risk level on your portfolio, adjusting the mix of assets to potentially grow it faster.

The key is finding a balance you can live with.

Diversify, diversify, diversify

Spread your investments across sectors, asset types, and regions. Diversification doesn’t guarantee a profit or eliminate the risk of loss, but it may help buffer your portfolio when one area takes a hit.

A balanced portfolio might look like:

• 60% equities
• 30% bonds
• 10% cash or equivalents

Bonds and stocks tend to react differently to market conditions, so they can work as a hedge against each other, while cash and cash equivalents may help smooth out volatility in the other parts of your portfolio.

Celebrate when markets sputter

It sounds backwards, but long-term downturns (often called bear markets) can work in your favour.

When prices fall, you can buy more shares for less. Think of it like a sale! Over time, that has the potential to boost your portfolio when markets recover later.

Of course, this only works if you have time on your side. If you need to access your money (like for retirement) soon, stability matters more than chasing growth.

Set it but don't forget it

If you want to remove emotion from investing, automation is your BFF. Set up regular contributions to your investments and let them run on autopilot. This approach — often called dollar-cost averaging—means you invest a fixed amount regularly, no matter what the market is doing.

Filter news and data (seriously)

Checking your portfolio daily or constantly consuming the news is a fast way to second-guess yourself. Instead:

• Check in occasionally.
• Stick to reliable sources and be careful about blindly taking financial advice from AI.
• Be cautious with social media, financial influencers and “hot tips.”

Just because information is available doesn’t mean it’s accurate or useful.

How to keep an eye on investment trends without overreacting

You can hear the market noise from the sidelines without getting swept up into an emotional tornado.

• Monitor strategically. Skip the daily check-ins. Focus on long-term progress, not short-term swings. If you’re constantly watching, every dip feels bigger than it is.
• Review without reacting. Checking in doesn’t mean taking action. Use reviews to rebalance or confirm you’re still aligned with your goals. 
• Be patient. Markets go up and down. That’s normal. What matters is staying aligned with your goals.
• Learn from experience. Think back to how you’ve reacted to past market swings. Did you stay the course or veer off track? Use that insight to build better habits going forward.

Turn down the volume

Remember that old viral video about the honey badger? The joke is that he’s the most fearless animal on the planet, not because he has sharp fangs or claws – but because he “don’t care.” He stays laser-focused on his goals, largely ignoring the chaos around him.

When it comes to investing, be like the honey badger: turn off your emotions, tune out the market noise, and focus on your financial goals. And if emotions creep in? Automate and stay the course.

READ MORE: A beginner’s guide to investing

¹ Hallam, Andrew. Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School, page 90.