MMBB members who follow the capital markets may have noticed the increased volatility in the US stock market this month. During the six trading days between October 4th and October 11th the Dow Jones Total Stock Market Index recorded a decline of 6.88%. This was primarily a reaction among market participants to rising interest rates. Non-US stock markets followed suit, declining 5.38% for the same time period.
In assessing these data, members should remember that MMBB is committed to diversification among asset classes in the Balanced Fund, New Horizons Fund, and Annuity Fund. All of these multi-asset class funds declined much less as a result. MMBB’s strategy remains steadfast and, as long-term investors, MMBB is well-positioned to weather short-term volatility events.
Since the end of the Great Financial Crisis, the US stock market has been on a strong upward trajectory with very few setbacks. Hence, a period of decline like we have experienced this month is par for the course. Risk management is a cornerstone of MMBB’s long-term investment strategy; something that we incorporate into building our multi-asset class portfolios. We hope that members likewise realize that ups and downs occur from time to time in the global capital markets. However, we are also appreciative of the fact that some members may be concerned as to whether their MMBB investments are aligned with their own objectives. We encourage any member with such a concern to call one of MMBB’s financial planners to discuss objectives, time horizons and investments — as always, complimentary and included in your MMBB membership. Please call us at 800.986.6222. We are here to serve you.