Jonathan M. Satovsky discusses the benefit of people reflecting on their behavior and balancing the here and now with the later, for an abundant future.
Good afternoon. This is Jonathan Satovsky of Satovsky Asset Management. June 2019 with a video blog update.
And today I wanted to be brief in honor of the summer season.
And have a little reflection and imagined possibilities of how people can approach the field of finance and behavioral finance for the betterment of their own future in decades ahead regardless of what happens in the financial markets during a day, during a week, during a month or even a year for that matter.
So what am I talking about.
Well, the month of May was an extraordinarily volatile month in the financial markets.
And, as you can see, there was $25 billion in reported net redemptions out of long term ownership stakes and businesses.
$25 billion and the markets were down 6+% in the month of May.
And as you would expect as the month of May ended, pessimism spiked.
People were extraordinarily had a dark view on the future.
And what I would surmise is that when you’re feeling yourself getting glum or having a dark view about the future, grit your teeth and invest a little bit of money.
And why do I say that?
Well as of now we’re now on June 25th, the markets are up, you know 7% for the month of June.
We don’t know how it’s going to finish.
This is not a prognostication of what may happen in a week, in a month, in a year.
But, during the summer months as you take a well needed rest and vacation and travel, reflect on how our own behaviors sow the seeds for the future that we want to be part of; balancing the here and now with the later is an understanding of both of yourself, as well as what’s happening in the collective conscious of society.
So when there’s extraordinarily high anxiety, generally really good time to invest.
When people are really optimistic and really calm, not so good.
So with that enjoy your summer and I’ll speak again in July.