This week on the SAM video blog, Jonathan discusses how Attitudes lead to more reflective Analysis. This helps foster an effort to craft a life of long-term Abundance!
Good afternoon. This is Jonathan Satovsky of Satovsky Asset Management.
You see I’m walking a little bit along on a sunny day. All unshaven but the sun is shining. The birds are chirping. And today I wanted to talk about the letter A.
Honestly, I have a little anger in me. I don’t know why I’m angry but I’m angry. I don’t want to be angry. But I have a lot of anger. I’ll tell you why I’m angry.
I want to focus on the right attitude for myself, my team, my clients, my family, friends, people I love.
Attitude analysis and a future of abundance.
And a lot of people I’ve spoken to in the last several weeks, from clients to friends to very very smart people. Very very smart people. Are all assured that the next 6 to 9 months, everyone knows with certainty that, that things are gonna be a lot worse. And the markets are headed themselves and blah blah blah.
And that attitude has led to close to 60 billion dollars of redemptions in the last 4 weeks out of equities. A steady outflow out of equities into Treasuries.
And the outflows have been 9 billion, 19 billion, 20 billion. You know it’s just a non-stop fear of the future has caused people to pile into Treasuries.
So here’s my analysis. With 75% of people negative or neutral about the future and money flows being massively negative.
Small companies in the world down 30 to 50 percent globally. Which likely reflects the fact that there’s been a global shutdown and many businesses are gonna suffer and who knows who will recover and who won’t.
The Sir John Templeton quote comes to mind is that bull markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria.
Doesn’t quite feel euphoric, buying Treasury bonds at zero is a degree of euphoria because of the desire to reduce volatility and have perceived certainty.
And from a behavioral economics perspective, I know that desire for certainty and desire to want to get back in when the waters are calm and when people feel better, 99% of the time people feel better when prices are higher.
And it hurts their terminal wealth and their terminal abundance.
So, I’m angry because I want to educate people. This isn’t about me. This isn’t about knowing what the future is.
No one knows what the future is gonna be. I acknowledge that. Without question I have no clue.
But if someone has a 10, 20, 30 year time frame from a little perspective of an attitude of abundance over multiple generations, don’t you want to buy when people are fearful even if it’s you that’s fearful? And sell when you’re, when people are greedy even if it’s you being greedy?
So, I’m gonna leave you on that note with an unshaven beard. You could see I’m getting gray thinking, reading a lot, trying to do my best to influence the people that are in my life with a better attitude of abundance and hope this is my little part of putting my little droplet in the water for whoever I can impact.
Have a good day.
At SAM our dedicated team of professionals consider it our privilege as well as our fiduciary duty to provide clients with the highest standard of care in the advisory world. To learn more about our services get in touch with a member of our team today.