Good morning. Good afternoon. Good evening. This is Jonathan Satovsky of Satovsky Asset Management with a quick episode of Seeking Wisdom, Wealth, and Wellness from the perspective of market declines.
If I told you that the market was going to decline 10%, 5%, 10%, 20%, what would you do differently than you’re doing right now? Well, the market will decline 5%, 10%, and 20%; does it mean you alter your path? Well, let’s think about it. There are tax consequences, there are trading costs, and there’s the anxiety of getting in and out and trying to time that decline perfectly.
Does the market go up 20% before it declines 10%? Does it go down 10% and up 20%?
The markets will decline 5% three times a year on average; the markets will decline 10% one time a year on average, and the market will climb 20% every two and a half years1. That’s going to be par for the course in perpetuity.
Be prepared. Realize mentally, emotionally, structurally, how to create a system that will insulate you to be healthy, wealthy, and wise for generations to come. Ponder that on this episode of Seeking Wisdom, Wealth, and Wellness.
Have a great day.