Summer Vacation Time:

Seven Reasons to Unplug (From Your Smartphone)

The double-edged sword of the information age is that it often feels as though the world is getting worse, even as many things have been gradually improving. While access to information has never been greater, the headlines are driven by negativity and sensationalism, rarely highlighting the progress being made.

Yet, we’re living in one of the most remarkable periods in human history. Life expectancy and wealth are at record highs; poverty, child mortality and violence are at multi-decade lows. Innovation continues to shape a world with more opportunities than ever. But progress rarely makes front-page news—it happens quietly, gradually and often goes unnoticed.

This summer, perhaps it’s time to take a break from the headlines. Here are seven reasons why our hyperconnected world may be impacting our investing focus—and why unplugging might be more beneficial than you’d expect:

1. Shorter holding periods can reduce returns — The average investor today holds a stock for just five months—compared to nearly eight years in the 1950s. With real-time market access at our fingertips, it’s easy to confuse access with insight, which may be encouraging more frequent trading. Yet, research shows that frequent trading can hurt performance: An investor who was out of the market during the top 10 trading days for the S&P 500 Index from 1993 to 2013 would have achieved a 5.4 percent annualized return, instead of 9.2 percent by staying invested.

2. We are increasingly making impulsive decisions — A recent study from the NYU Stern School of Business found that the median individual investor spends just six minutes researching a stock before buying it online. Technology not only speeds up access to information , but also our reactions to it—often encouraging decisions that are more emotional than analytical. Consider this: for every 100 millisecond improvement of Amazon’s site load time, revenue reportedly increases by one percent. Speed can drive impulsive behavior.

3. Frequent portfolio checks increase the likelihood of seeing short-term losses — The average person checks their phone 352 times a day—about once every 2 minutes and 43 seconds. With access to our financial accounts at our fingertips, chances are many investors are checking portfolios more frequently. Yet, frequent checks increase the likelihood of seeing short-term losses. For example, if you were to check the S&P/TSX Composite Index on a daily basis, you’d see a negative return around 48 percent of the time, compared to only around 28 percent of the time when checking annually. Consider that losses tend to feel twice as painful as gains feel rewarding .

4. Too much news can take a toll — Many of our phone checks lead to the news headlines. While the media has always skewed to reporting negative news because it attracts more attention, recent research suggests that it has become increasingly more negative. “Doomscrolling”—the habit of endlessly consuming negative news— was added to the Merriam-Webster dictionary in 2021, a sign of just how common it’s become. While staying informed is important, constant exposure to distressing headlines has been linked to increased anxiety and depression. Research suggests that reducing screen time—even by a little—can lead to noticeable improvements in mental well-being within just a few weeks.

5. Negativity bias can cloud investment thinking — Our brains are hardwired to protect against threats. This survival instinct can cause us to act on negative news. Research also shows that social media amplifies herd behavior, especially during times of market stress—often leading to emotionally-charged decisions that stray from long-term plans.

6. Time is a limited resource — Indeed, time may be one of our most finite assets—and yet, we often spend more of it on screens than we realize. One statistic suggests the average adult logs at least 4 hours and 39 minutes a day on their phone, or almost 70 days per year. Over a typical adult lifetime, that adds up to almost 12 years of screen time! Of course, smartphones have helped to improve efficiency— today, we can order food, book a ride, track our health or paya bill—all via our smartphones. However, if you’ve ever lost an hour to TikTok or Instagram, it’s worth asking: How much of life is being traded for scrolling?

7. Unplugging can help rebalance perspective — Stepping away—even briefly!—from constant connectivity may help to refocus on what matters most: time with family, personal growth or whatever brings you joy and purpose. That’s where we, as your advisors, come in. One of our roles is to help simplify your financial life so you can feel confident focusing on what is truly important.

In a world that is constantly connected, why not consider unplugging?

Sincerely,

Harvey Morrison Private Wealth

1. https://www.visualcapitalist.com/the-decline-of-long-term-investing/; 2. https://www. cfainstitute.org/-/media/documents/support/future-finance/avoiding-common-investor-mistakes.pdf; 3. https://www.wsj.com/finance/investing/buying-stocks-research-study- 2a839a4a; 4. https://www.forbes.com/sites/steveolenski/2016/11/10/why-brands-are-fighting-over-milliseconds/; 5. https://www.asurion.com/connect/news/tech-usage/; 6. Based on S&P/TSX Composite changes in daily and annual performance for the past 40 years; 7. https://www.bbc.com/future/article/20200512-how-the-news-changes-the-way-we-think-and-behave; 8. https://bmcmedicine.biomedcentral.com/articles/10.1186/ s12916-025-03944-z; https://www.researchprotocols.org/2024/1/e53756/; 9. https://www. sciencedirect.com/science/article/abs/pii/S1059056023001326; 10. https://www.statista. com/statistics/1045353/mobile-device-daily-usage-time-in-the-us/