When there is a remarkable correction in the world markets, it is understandable that we all feel vulnerable, especially those of us with nest egg money invested to grow and sustain us through retirement, or those of us who manage the funds of congregations or institutions.
I want you to know that we at Brethren Benefit Trust and Brethren Foundation Funds watch the markets closely, and with the recent volatility have been meeting daily and discussing strategy. Our main concern is you and your assets.
Here is what I want to share with you right now, in light of the recent events in the markets.
WHAT TO EXPECT:
The decline in global markets in mid-August began with China’s faltering economy, and what continues to happen in China will continue to affect volatility. It is important and encouraging to know that they took measures to correct some of the decline, and have still more economic tools they can use to further add to the stability. We are confident that policymakers are motivated to work toward a long-term recovery, using every measure available.
HOW TO REACT:
It’s normal to be worried about what is happening to your money during times of tremendous market fluctuation, but BBT developed investment guidelines with a long-term view in mind, and the recent economic developments do not warrant any change in that viewpoint. What we are sensing from meetings with our financial experts is that the markets are doing what they always do, but in the most recent case with more volatility than we have seen in quite some time. There is no need to panic; rather, you should continue to think long-term. Volatility is not a bad thing — it is what drives growth. What you should do is assess your own risk tolerance when it comes to your portfolio. BBT’s diversified funds were constructed with the goal of insulating them from the effects of substantial losses in any single investment or sector of the market. If you are not comfortable with risk during an unusual period of market volatility, then you should use this time to minimize the amount of risk in your investments.
HOW CAN WE HELP?
As I write this, the markets are on what seems to be the third day of a rebound. Who knows where the markets will go tomorrow? In the meantime, education is your best defense, and reading business publications is a great place to start. The financial reports are telling us to stay the course (unless you need to adjust your risk tolerance), that China has the tools to help things improve, and that nothing has fundamentally changed in the U.S. markets.
As always, if you have questions, comments, or concerns, feel free to drop me a line at firstname.lastname@example.org or give me a call at 847-622-3388.