Lessons From the “Ring”

Six Things You Should Know

1. Equity Markets –  were mixed this week with U.S. stocks (S&P 500) gaining +0.20% while international stocks (EAFE) fell -2.14%. 
2. Fixed Income Markets – were down this week with investment grade bonds (AGG) losing -1.15% and high yield bonds (JNK) declined -0.83%. 
3. Producer Price Index – Producer prices rose 1.4% in April, well above expectations as energy prices continue to weigh on prices. A 7.8% spike in oil prices led to the fastest pace in monthly price growth in almost 4 years. Producer prices are now up 6% year-over-year.
4. Consumer Price Index – Consumer price (CPI) growth was more muted in April up 0.6%, with a 3.8% energy price increase leading the way. “Core” CPI, which excludes food and energy, is now up 2.8% year-over-year while real average hourly earnings fell 0.5%.
5. Cybersecurity Reminder – Scammers are increasingly using Remote Access Tools (RATs) along with phishing emails or texts to take control of devices like phones, tablets, and computers. Once installed, these tools can give cybercriminals access to sensitive information, including your Schwab accounts. These attacks can be hard to spot, so if something doesn’t feel right- like unusual account activity or suspicious messages- trust your instincts. If you sense suspicious activity, please call us immediately or report any concerns to Schwab at 800-515-2157. 
6. Key Insight – [VIDEO & ARTICLE] The truth about investing is that it usually “feels” good over time as markets are allowed to work, but the day-to-day is full of many fears, obstacles, and sometimes “punches to the face” of investors. We discuss getting our mindsets right to “win the fight,” and we share some historical facts to encourage you to step in the ring properly prepared.

Insights for Investors

By Tim Mitrovich

Lessons From the “Ring”

“Everyone has a plan until they get punched in the face.” – Mike Tyson 

While being asked to discuss his boxing strategy and being somewhat chastised by the interviewer for not having more of a “plan,” Mike Tyson dropped the gem above while dismissing his opponent’s plans. I have thought of this quote a lot when it comes to investing for a few reasons, that I thought I would share this week which may sound obvious, but in the heat of the moment I think many investors run the risk of forgetting and, consequently, making decisions they will come to regret over time. 

With that, let’s frame up what being an investor entails, inspired by the boxing legend Mike Tyson, and one of my favorite childhood games, Mike Tyson’s Punch Out.  

I. Investing Can Result in Riches but Not Without Proper Preparation for the Fight  

A simple Google search will show that during his peak, Mike Tyson had an estimated net worth between $300-700 million dollars. He clearly needed a better financial plan and/or discipline, as he would eventually go broke. (Source: Mike Tyson via Binance) 

However, that money only came after countless hours of grueling training and a willingness to step in the ring and take on all his opponents with all their punches.  

If investors dream of the riches that can come from investing that they have seen others make, they need to keep in mind and embrace the amount of work and preparation it will take, the challenges they will face from both markets and life events, and, of course, commit to employing the discipline it is going to take to achieve the results they hope to see. 

Anything worth accomplishing exacts some type of a toll and investing is no different. There is the discipline of saving versus spending, of properly accounting for the various scenarios that markets and life will bring, as well as having the courage to take on the fear and greed within us all that markets try to cull out and exploit–  emotions that can derail the best of plans. 

If it’s a fight, that also means… 

II. There’s Always Going to be a Challenger to Face 

The media, and consequently many investors, always seem surprised and despondent each time a “challenge” arises for markets to overcome. Their behavior seems to suggest that they expected their lives, economies, and markets would all just move forward in perfect order. 

Of course, this sounds ridiculous when you say it “out loud” and yet after 30 years in the industry it is how many behave. 

The reality, just like boxing, is that if you step in the investing “ring” you are going to face a never-ending array of “scary opponents.” 

And yet, as the chart below with just some of the headlines that have roiled markets at various points in time shows, (a) there is always something to fear and challenge markets, but also (b) markets have proven time and time again their ability to conquer even the scariest of adversaries. Why do so many investors fear that next opponent is the one that will be the exception?  

To that end, I often remind people the world will only end once and there isn’t point in trying to time or plan for that. The rest are just challenges to overcome through emotional and financial balance. 

Today, it’s the war, inflation, and the mid-term elections, but these are just the latest in a long list, and they won’t be the last. We discussed the war and how markets usually react in very counter-intuitive ways back on March 6^th, 2026. This week’s main “angst” seems to be around inflation. But as usual, if one digs just a bit deeper than the media usually does, you realize pretty quickly it’s not quite as bad as they would have you believe. As Tom Lee pointed out, one of the reasons beyond oil was that the shelter jumped up 6.5% annualized, but people should have been prepared for that as the last reading was supposed to come during the government shutdown in October, which didn’t occur. Without that distortion, CPI would have just been at a 2.7% annualized rate. (Source: Fundstrat, 5/13/26) And lastly, as the markets hit new highs and people generalize that it all makes “no sense,” they show they are unaware of (a) that S&P 500 earnings continue to be strong with 86% of companies beating their estimates this quarter, and (b) the S&P 500 now trades at a median P/E lower than it was at the end of 2019. (Source: Fundstrat, 5/14/26) 

The other reality investors must embrace is that if you are going to face an opponent in the ring… 

III. You are Going to Get Punched  

Mike Tyson, like any champion boxer, wasn’t the heavyweight champion of the world because he never got punched, but because he could take the punch and hit back harder. 

We’ll get to the resilience of markets (ability to hit back) later. Before that, we need to address and accept that part of the journey of an investor means rolling with the “punches” that markets are going to dole out over time. 

Consider the chart below. And perhaps consider each calendar year “one-round” in the life of an investor with all the red bars representing the punches one can expect to take, or times that markets will likely get “knocked down.” 

What should stand out is that meaningful drawdowns in the market a.k.a. “knock-downs” are hardly the exception but rather the rule. However, so is the reality that despite an average intra-year drawdown of over 14%, 75% of years end still up positive. Our fear tells us that “knock-downs” and “knock-outs” are the same but history shows they are not. 

If you are going to “get punched” then you better have both a mindset that accepts that fact, and also an investing plan that takes into account that things aren’t always going to go smoothly and what steps you will take, or not take, when those moments arrive. More on that below. 

IV. Markets are Resilient but so are You When Empowered with a Good Plan and Partner 

The charts above show in different ways the market’s history of overcoming all manner of setbacks, but the chart below shows that with each “challenge” the media loves to stoke investor’s fears around a prolonged drawdown. The reality is that most challenges and related market declines reverse far quicker than most would expect. 

As we advise clients, investing success is not found in prediction but preparation. Yes, the market can face real challenges that can create problems for a time but that is why we build plans that utilize our L.I.V.E. methodology to help you address such issues well in advance of that occurring.  

That process walks you through 1) Liquidity – making sure to identify and position safer assets for known and unknown needs; 2) Income – establish sources of income, whether from outside sources or a portfolio, with sufficient and stable cash flow; 3) Volatility Reduction – design the portfolio to address the emotional limits that may differ between investors but exist for us all, and by doing so give investors the best chance to achieve the 4) Expected Returns – they hope to achieve over time. 

It helps to have a great partner to come alongside you as well. A good partner should ask you questions that help you really uncover the goals and principles that you want to guide your financial life, design a plan and portfolio that reflects those goals both substantively and stylistically, and build a relationship that enables support and encouragement that feels authentic during periods of trial. And while we may not have the charisma of Hall of Fame Boxing coach Teddy Atlas, (see his famous ringside moment here: Teddy Atlas Inspirational Speech) we do our best to encourage you each step of the way.  

Conclusion 

Being critical and critical thinking are not the same. The critics perpetually try to scare you by pointing out everything that can go wrong, by claiming this time will be different, and that only they have the special insights to predict and manage these new realities. 

These people come and go, and time and time again are proven wrong. 

Partnership empowered by a solid knowledge of market history on the other hand, can help you get the perspective to “roll with the punches” that the life of an investor will bring, and make sure you get back up off the canvas. 

As always, we are here for you and those your care about. 

Have a great weekend, 

Tim and the team at TEN Capital 

Data, Just the Data

• U.S. Existing Home Sales – rose slightly in April by 0.2% from March’s 7-month low to annualized rate of 4.02 million units. Sales were done in West but higher in the Midwest. 

• U.S. Jobless Claims – initial unemployment claims rose by 12,000 last week for a total of 211,000, above expectations. Continuing claims also moved higher by 24,000 to 1,782,000, slightly under expectations. 

• U.S. Retail Sales – rose 0.5% month-over-month in April, for the 6^th consecutive month of sales growth. While a surge in oil prices continue to lead sales, even when excluding gas stations sales rose 0.3%. 

• U.S. Industrial Production – increased 0.7% in April for the highest monthly spike in 14 months. Manufacturing output, which accounts for roughly 78% of total production, rose 0.6%.