Message from the President
Rob Fairly
Rob Fairly

 

Dear Friends,

The only certainty in the market in the last quarter was volatility. The most dramatic day was May 6 when we saw a 1,000 point intraday drop in the Dow. Consumers are afraid to spend, banks are afraid to lend, and employers are afraid to hire. The market does not like fear and uncertainty. 
 
While the S&P and DJIA were down 6.7% and 5% YTD respectively, the Foundation’s Balanced Fund was down only 4.2% YTD.   It is actually up 11.1% from the same date last year. The Equity Fund fell 10.89 % YTD but is up 11.4% for the last 12 months.  The Income Fund paid 1.75%.
 
So what are we to glean from this? Famed investor, Warren Buffett, compares an investor to a farmer. A farmer does not watch the morning weather report and then run out to put seeds in the ground or take them out. He looks to the farm to produce crops over time, through good weather and bad. The food he plans to eat right away he keeps in the pantry. Good advice for the church. 
 
Money the church needs this month or year should be in the Income Fund (“the pantry”). A dollar there has maintained its value and produced income since it opened in 1994. 
 
To produce crops for the future, look to the Balanced Fund. U.S. stocks have lost value in only two ten-year periods since 1890, the Great Depression and the Great Recession, our recent experience. Since its inception in 1985, the Balanced Fund return has averaged 7.67%. 
Good crops.
 
Warren Buffett also said the biggest lesson he ever learned from his father was about the power of unconditional love. And, just think, God gives us that every day. Thank God.
 
Thank you for sharing your ministry with the Foundation.
 
Sincerely yours,

Rob Fairly
President