Fear Shouldn’t Dictate Investment Strategy
Timothy Plan Says Christian Investors Can Have Peace of Mind Even in Turbulent Markets If They Honor God With Resources
ORLANDO, Fla.—The markets don’t like uncertainty and neither do investors, but many financial experts say when markets are down, investors shouldn’t run away but rather make smart decisions and invest wisely.
The Timothy Plan family of mutual funds says investors should also invest biblically.
Art Ally, president of the Timothy Plan, recently spoke on this topic with Tony Perkins on his national “Washington Watch” radio program.
“This current roller coaster is happening because of short-term concerns leading to uncertainty, and the main driver this time is China and the more than decades-long trade problems that are now being addressed,” Ally said. “China is not used to strong negotiators, and our president knows we hold all the cards. But in the markets, uncertainty almost always results in the markets going down. Long term, however, investors can sit back and see what is actually happening economically. This is the strongest economy almost since I’ve been in this industry—45 years. We’ve just announced that for the first time in 75 years that the U.S. is a net exporter in oil, which is a major factor in our trade deficit. Tax cuts and deregulation has corporate America in the best shape it’s been in decades. Long term, things look very good.”
Short term, however, a recent article in the Los Angeles Times listed several reasons for the dips, including, as Ally noted, the U.S.-China tariffs and trade battle, tumbling oil prices, the Federal Reserve raising interest rates and fears about an economic expansion that is ready for a cyclical contraction.
To put the recent economic turbulence in context, the Times also reported several facts: 1) the current pullback isn’t nearly as severe as some of the major busts of the last two decades; 2) triple-digit swings in the Dow industrials that garner big headlines are more common than decades ago because the market has climbed so high; 3) the stock market reached its highest levels in history just a few months ago, and that was after the market soared in 2017, therefore it’s not surprising that investors would be willing to sell and capture those profits when signs of trouble surface; and 4) last year also was unusual for the lack of volatility that is now again commonplace.
“The market is nervous right now,” Ally continued. “This is not 2008 all over again when everything was built on quicksand. We believe we’re on a solid foundation. But one problem is that investors react to the short term, and that’s one of the reasons the average investor loses money in the market. When China finally comes to the table, we think people will want to be invested in the market.”
Timothy Plan promotes biblically responsible investing (BRI), allowing clients to invest in a way that aligns with both their values and retirement goals. A foundational principle is that God owns everything, and Timothy Plan leaders are firmly committed to running a mutual fund company with the integrity, excellence and wisdom that brings honor and glory to the Lord. Timothy Plan, for example, does not invest in companies that support abortion, pornography, anti-family agendas or have other agendas contrary to the teachings of Scripture—or that are actively participating in activities that may prove destructive to communities-at-large.
Mutual funds are available through a prospectus (Timothy Plan Prospectus) by contacting the fund or a financial professional. When considering a mutual fund, investors should always carefully read the prospectus before inventing to analyze the investment objectives, risks, charges and expenses.
Timothy Plan is distributed by Timothy Partners, LTD a member of (FINRA).