Don't Be Spooked by Market Volatility - Opportunity is Still Knocking!

One of the greatest fears this October—possibly the most volatile month of the year—has been the correlation between the S&P 500 Index’s ascent in the first three quarters of the year and the possible ramifications of the end of quantitative easing (QE). 

It’s well known that Japan and Singapore have been buying their countries’ blue chip stocks with their excessive money printing. Today, about 1.8 percent of the Japanese market is owned by the Bank of Japan. American investors fear the Federal Reserve might do the same and take away the punch bowl, so to speak.

As you can see, the S&P 500 Index has been rising in tandem with government securities, and it’s uncertain what will happen when QE ends. 

Near-Term Tax Free Fund (NEARX), which has delivered positive returns for the past 13 years.

Happy investing, and stay safe!

Past performance does not guarantee future results.
Bond funds are subject to interest-rate risk; their value declines as interest rates rise. Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local income taxes, and if applicable, may subject certain investors to the Alternative Minimum Tax as well. The Near-Term Tax Free Fund may invest up to 20% of its assets in securities that pay taxable interest. Income or fund distributions attributable to capital gains are usually subject to both state and federal income taxes. The Near-Term Tax Free Fund may be exposed to risks related to a concentration of investments in a particular state or geographic area. These investments present risks resulting from changes in economic conditions of the region or issuer.
Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, a regional fund’s returns and share price may be more volatile than those of a less concentrated portfolio.
Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in these sectors.
Stock markets can be volatile and can fluctuate in response to sector-related or foreign-market developments. For details about these and other risks the Holmes Macro Trends Fund may face, please refer to the fund’s prospectus.
The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The S&P 500 Biotechnology Index is a capitalization-weighted index.  The index is comprised of six stocks whose primary function is technology based on biology, used in agriculture, food science and medicine. The Stock Exchange of Thailand Health Care Services Index is capitalization-weighted index of all stocks of the Stock Exchange of Thailand Index that are involved in the health care service sector. The index was developed with a base value of 100 on April 30, 1975 with parent index SET. The NASDAQ Biotechnology Index contains securities of NASDAQ-listed companies classified according to the Industry Classification Benchmark as either Biotechnology or Pharmaceuticals which also meet other eligibility criteria. The NASDAQ Biotechnology Index is calculated under a modified capitalization-weighted methodology. The NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks) Index (HUI) is a modified equal dollar weighted index of companies involved in gold mining. The HUI Index was designed to provide significant exposure to near term movements in gold prices by including companies that do not hedge their gold production beyond 1.5 years. The Market Vectors Junior Gold Miners Index is a market-capitalization-weighted index. It covers the largest and most liquid companies that derive at least 50 percent from gold or silver mining or have properties to do so. The Philadelphia Gold and Silver Index (XAU) is a capitalization-weighted index that includes the leading companies involved in the mining of gold and silver.
Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the funds mentioned as a percentage of net assets as of 9/4/2014: Gilead Sciences Inc. 1.84% in All American Equity Fund, 1.93% in Holmes Macros Trends Fund; JPMorgan Chase & Co. 0.00%; Celgene Corp. 1.23% in All American Equity Fund, 1.14% in Holmes Macros Trends Fund; Bangkok Dusit Medical Services 0.00%; IAMGOLD Corp. 0.90% in Gold and Precious Metals Fund, 0.19% in World Precious Minerals Fund; Newmont Mining Corp. 1.11% in Gold and Precious Metals Fund, 0.26% in World Precious Minerals Fund; Randgold Resources, Ltd. 1.92% in Gold and Precious Metals Fund, 1.17% in World Precious Minerals Fund; Market Vectors Junior Gold Miners ETF 0.16% in Gold and Precious Metals Fund, 0.17% in World Precious Minerals Fund.       
Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is also known as historical volatility.

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Written By: Frank Holmes