Adopting a Facts over Fear Mindset

Jonathan Satovsky
Jonathan Satovsky CFP®, ChFC®, CIMA®, CPWA®

This week on the blog, Jonathan discusses the importance of choosing a fact over fear mindset to achieve abundance over scarcity.

Good afternoon. This is Jonathan Satovsky of Satovsky Asset Management. March 4th, 2020 with a video blog update.

And today we’re gonna start a topic called seeking wisdom, wealth and wellness.

And today’s topic is facts over fear.

So let’s talk a little bit about it.

You can see I’m travelling fearlessly.

And the airport is relatively quiet.

So this corona virus has approximately 3% death rate and it’s mainly older people over 60 with compromised immune systems.

By comparison, the common flu kills over 20,000 people per year at the U.S. versus 4,000 deaths globally for the current virus.

So the history of past viruses Zika, SARS, Ebola, saw minimal long-term effect on the economy.

One to two periods of economic slowdown.

One to two quarters and then it bounced back due to pent-up demand.

So the Federal Reserve cut interest rates 50 basis points yesterday because they probably realized when they look at the data that we’re living through recession as we speak.

People are not travelling. People are not spending. People are staying home. People are absolutely petrified.

So to prevent an out-of-control event, they took pre-emptive action.

Well, what does this have an impact on?

Well the 10-year Treasury is 1%, so you can, this is a fact, you can buy a 10 year Treasury bond and lock in 1% compounded rate over the next 10 years.

Or, you could buy U.S. buinesses. Yeild on the S&P 500 2% and the yield on non-U.S. stocks is 3.4 percent.

So you can buy businesses and wait it out.

Yes, you could live with more volatility but the potential exists with the Dow at 25,000. That I can, when I step back and I suppress my short-term fear and I look out on the horizon. I could see the potential for the Dow being worth 50,000, 100,000.

So, don’t I want to set myself up looking forward to give myself the potential to double or quadruple my resources and look at the world with abundance rather thatn scarcity that we’re all gonna die.

I’m not taking part in that and I’m travelling fearlessly and so should you.

Have a great day.

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This video is not intended to be, nor should it be construed or used as, an offer to sell, or a solicitation or offer to buy any securities or interests in any strategy offered by SAM. Please remember that different types of investments involve varying degrees of risk, and that past performance is not indicative of future results. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the strategies recommended or undertaken by SAM) will be profitable. Market index information shown herein is included to show relative market performance for the periods indicated and not as standards of comparison. The market volatility, liquidity and other characteristics of SAM’s portfolio composition are materially different from the securities listed on public market indices. Market index information was compiled from sources that SAM believes to be reliable. No representation of guarantee is made hereby with respect of the accuracy or completeness or such data. Opinions are as of date of video and are subject to change. A copy of SAM’s current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request. SAM undertakes no duty to update information presented herein.

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