For Immediate Release
Contact: Yvette Vanterpool
MMBB Financial Services
August 28, 2015
Volatility in stock markets worldwide has tried the resolve of even the most patient and professional investors. The current roller coaster began with the slowing of China’s economy, devaluation of China’s currency, the yuan, and sell-off on the Shanghai stock exchange.
In the context of this volatility, I want to make three points.
First, it’s important to keep the market performance of the last few weeks in perspective. The current bull market is the third longest in history, beginning in March of 2009. During this time we have seen several market declines—over the Greek bail out in 2011, the federal debt cliff in 2012 and the global growth scares in 2014. Despite these downturns, the Dow Jones Industrial Average increased 180% from its low point in March 2009 to its all-time high in May 2015. While we don’t know when markets will recover from the current downturn, we do know that, historically, over the long-term, markets do recover.
Second, your investments in MMBB Financial Services are in good hands and managed in a highly disciplined fashion by our professional investment department. Our Balanced Fund, New Horizons Fund and Annuity Fund are very well diversified. In fact, some of our private investments and real estate investments actually added value this month. Our hedge fund investments afford additional cushion against market unpredictability. We also believe that market fundamentals are unchanged and that the current volatility is exaggerated.
This brings me to my third point. What should you do? If you have a long-term investment plan with which you feel comfortable, stay the course. If you have questions about whether your financial plan is appropriate to meet your financial goals or you plan to retire soon, call us at 800.986.6222 and ask to speak with one of our financial planner professionals. They are here to serve you.
Finally, I have a special message for MMBB annuitants. As you know, the annuity payout is the product of four factors—investment experience, the 4% advanced earnings assumption, mortality experience and the value of the underlying assets. While I cannot predict what the 2016 payout will be, I can assure you that the downside guarantee included in your annuity will limit any decline in the payout to 10% regardless of market performance.
I understand how difficult it is to remain calm in the midst of such dramatic events. Our financial planner professionals are available to walk with you during these turbulent times. Please call us at 800.986.6222 or email us at firstname.lastname@example.org if you have questions about your investment account or your financial plan.
Louis P. Barbarin, CPA
Chief Executive Officer