"Reasons to Sell"

Dubin Wealth Management - Jun 15, 2020
We wanted to share with you the chart below to give a high level perspective of major world events over the past decade and how each of them affected the overall market and our investments.

We wanted to share with you the chart below to give a high level perspective of major world events over the past decade and how each of them affected the overall market and our investments. There has been many negative market driven events over the past 10 years that, at the time, may have looked like a great time to “cash out”. The Flash Crash of 2010, US debt downgraded in 2011, Ebola crisis in 2015, Brexit in 2016, the US government shutdown and trade wars of 2019 and, of course, COVID-19 in 2020, just to name a few. All of these “crises” turned out to be short lived market corrections and in turn became long term buying opportunities. Even though the current global environment is in uncharted territory, we do have the full support of the Federal Reserve and European Central Bank which are printing money at an unparalleled rate which will help inflate asset classes such as real estate and equity markets.

 

The investments we pick for our clients are made up of good businesses, with strong management teams and defensive balance sheets, which are well positioned to grow revenues over time, therefore increasing dividends, share buybacks and in turn will see their businesses (stock prices) grow over time. The past 3 months has been another stark reminder that timing the market is an incredibly difficult task and has once again shown that our most certain path towards long term wealth creation is by participating in the growth of great businesses that are building for tomorrow and growing their earnings over time.