Good morning, good afternoon, good evening. Depending on the part of the world you’re in, this is Jonathan Satovsky of Satovsky Asset Management. Chilly edition of “Seeking Wealth, Wisdom and Wellness.” And today’s reflection about taking the long view [includes] reframing perspectives and storytelling.
What am I talking about? When people learn that I’m in finance and I help people with their relationship with money, with behavioral coaching, financial planning, wealth management, and investing, the first question that I get generally with a fair amount of nervous energy is, “What do you think is going to happen to the economy and the markets next year?” To which I retort, “Why does it matter? What’s the importance to you? What’s the relevance to you specifically? Are you living on the edge where what happens in the next quarter or year is going to be life or death for you? Is it make or break or can we reframe that picture to take a longer view?”
In this case, the guy had a certain business and I said, “Well, at the end of the day, if you extract enough profits out of the business to set aside and invest in other profitable businesses that you can benefit by the dividends and profits of other people’s labor, then work is optional. So then whatever happens in the economy, you can insulate yourself from – if you take the long view.”
And to just frame that perspective kind of simply – it’s just hard to conceptualize how simple it can be. For example, we’re now approaching 2024. Go back to 1994. Do you know what the S&P 500 is crossing? 4,500 now. Do you know what the S&P 500 was in 1994, the year I started in the advisory business? Which would have been 30 years ago. 450. So a 10x increase, not including dividends.
Think about that on your path while taking the long view.
Have a great day and a great year ahead.