You’re Capitalizing on Volatility

Dear Client,

This morning I received the following email from Matson Money. I wanted to be sure to pass this along as a helpful reminder as you endure these weeks of market decline:

“As part of our service to you, Matson Money reviews your clients’ accounts for rebalancing each quarter. As a courtesy I wanted to inform you that Matson Money will be rebalancing your clients’ accounts over the next few days if needed. We wanted to make you aware of this so there is not a concern if you see activity in some of your clients’ accounts. If you have any questions regarding this procedure, please contact your Investment Services Team.”

At times like these you need to remember a few things:

  1. Market volatility is normal. This happens all the time.
  2. We are capitalizing on this volatility by selling off the small gains where we get them (i.e. small emerging markets stocks are up 8.4% from January through end of September) and purchasing the declining classes.
  3. You are picking up shares of lower-priced stock every time rebalancing occurs as a result of market declines.
  4. In the end, more shares is the key.

While others are panicking and selling their ownership percentages, you are growing your share.

At our next World Class Coaching event, as always, I will be answering your questions. Please make plans to attend if you haven’t yet. Space is limited. See details below and call or email today.




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