Fighting Fear with Facts | Financial Market Volatility

Satovsky Asset Management

This week on the blog, Jonathan discusses the importance of fighting fear with facts in regards to current market activity.

Good morning. This is Jonathan Satovsky of Satovsky Asset Management.

On fear fighting Friday with some facts.

So 5% of the 43,000 publicly traded companies in the world are large or gargantuan companies.

And 95% of the businesses are smaller or medium sized businesses.

So, people are a little confounded why the markets are going up.

People are worried about the markets, the markets, the markets.

And with fear fighting Friday, we’re gonna reframe it to say it’s not markets. It’s underlying businesses.

And underlying businesses in this recent time, the large and gargantuan companies who are the most profitable have been able to get stronger during these last period of time. And the 95% of companies out of the 43,000 publicly traded companies, generally have had a more difficult time.

And it’s very true that the mass amount of employment is employed in small companies.

And in those small companies, there will be many that will not be able to survive and thrive unless the economies around the world reopen.

They may not be nimble and adept enough to be able to adjust their business model to become profitable.

So, simple idea is there will be a lot of innovation.

There will be a lot of opportunity for small businesses.

But right now the spread between the most profitable companies and the unprofitable companies is extraordinarily wide.

So, fear fighting Friday with a little optimism recognize that investing is a process that takes a lifetime.

And in spite of this recent peculiar moment in time we’re living through that may change the complexion of how people do business and how people live and how people operate.

There’s no reason for fear. There’s reason for innovation and for creativity to think through how do you reinvent the future that you want to be part of.

So with that, enjoy your weekend.

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Video Recorded May 15th, 2020
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Disclosures

This blog post 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 Satovsky Asset Management, LLC (“SAM”). SAM is a registered investment advisor with the Securities and Exchange Commission – for more information see www.adviserinfo.sec.gov. 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 indata. 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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