May 22, 2020: Attitudes – Analysis – Abundance

May 22, 2020: Attitudes – Analysis – Abundance

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.

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Christine Lucero, JD, CFP, CPWA
Head of Wealth Management
Phone: (212) 584-1900
ext. 112
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Jason Blumstein, CFA
Senior Investment Analyst
Phone: (212) 584-1900
ext. 119
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Frank Torrone, CFP
Wealth Strategist
Phone: (212) 584-1900
ext. 118
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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.
Investment Company Institute (2020). Combined Estimated Long-Term Fund Flows and ETF Net Issuance, May 20, 2020. Retrieved from https://www.ici.org/research/stats/flows/combined/combined_flows_05_20_20
Video recorded on May 20, 2020.
2020-08-11T15:56:01+00:00
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