Victory! (2012) by Gerry James

Monday, April 2, 2012

Investing—Follow God’s Directives Not Human Tendencies

Human tendency is to respond to what is happening in the financial markets or news from the media. Good news frequently provides confidence or triggers greed, which tempts us to buy; bad news makes us feel uncomfortable or fearful, which results in a desire to sell. Generally, good news causes the market to go up, and bad news causes the market to go down. Therefore, if you follow the normal human tendency, which is to rely on your emotions in making investment decisions, it means that you will buy high and sell low. This, of course, is the opposite to what you want to do, and it is not consistent with God’s investment principles.

First, our trust should be in God, not in any particular investment or money manager.

Have no fear of sudden disaster or of the ruin that overtakes the wicked, for the LORD will be your confidence and will keep your foot from being snared. (Proverbs 3:25–26, emphasis added)