The Frequency of Declines | Wisdom, Wealth, and Wellness

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

Good morning, good afternoon, good evening. Depending on the part of the world you’re in. This is Jonathan Satovsky of Satovsky Asset Management and on today’s episode of “Seeking Wisdom, Wealth, and Wellness,” I want to talk about the frequency of declines.

The markets are going through a 10%, what they consider, a correction. And those corrections have happened 63% of the time since 1928. 63% of the year, since 1928, we’ve had 10% declines. So quite frequently.

We’ve had 15% declines 40% of the time and 20% declines 20- over 25% of the time [more like] 26% of the time. That means one out of four years you have a 20% decline. So it’s par for the course.

However, when you’re living through it, the amount of tumult, pain, anxiety, stress, worry, recency bias, path dependency about people’s confidence about the future gets challenged quite a bit. People stop saving. People start making some behavioral mistakes. They change their path. They start thinking, “You know what? Stocks aren’t for me. It’s not a good thing to invest for the future. It’s too speculative. I can’t handle it.”

They don’t realize that you’re buying a share in a business, in a profitable business, and you’re a shareholder in the future profits and dividends that can give you and your family, and future generations, financial freedom. So, just think about it as catching the flu once in a while. Sometimes you get sick, you need to get a little extra rest, a little soup, you get a little recovery and you’re back in business.

So get some perspective so you can stay in the game on your path to Wisdom, Wealth, and Wellness.

Have a great day.

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Video Recorded October 29, 2023
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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 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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