How To Take Market Turbulence In Stride

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Last weekend I wrote about Sound Mind Investing and this weekend I'd like to highlight a timely article from their founder, Austin Pryor. It talks about how to take market turbulence in stride. The article gives all the normal advice that you'd find in any non-Christian piece such as "remember that every bear market is followed by a bull market," "consider the historical record," and "be realistic in your expectations," but it also contains some spiritual advice not found in other places. Here's what he has to say:

• Exhibit some fruits of the Spirit — practice patience and self-control. Take your cue from the Parable of the Talents where the master was away for "a long time" and make sure your strategy is a long-term one. This allows you to take up-and-down market cycles in stride. If you invest regularly, continue doing so regardless of market conditions. Your long-term dollar-cost-averaging strategy will use temporary setbacks to your advantage.

• Remember your Heavenly Father. Trust His promises. "Look at the birds of the air; they do not sow or reap or stow away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they?... But seek first his kingdom and his righteousness, and all these things will be given to you as well" (Matt. 6:26,33).

Personally, I'm not in any sort of panic about the market. Sure, I'd like to see it keep going up and up and up, but that's not realistic. Instead, I know that I have a sound financial plan and have taken the right steps to ensure success in the long-term, so the short-term bumps along the way won't be an issue for me. Furthermore, I agree with what Austin said and if we focus on the promises the bible has for us all, there's no need to panic or feel anxious whatsoever.

Comments

[nate]

I agree with everything you said on the issue.

[Mike]

As much as I have appreciated your approach to life and money I heartily disagree regarding having any sort of sound plan in this day and age. There is a world crisis that we, as Americans, are facing. Look at the direction our economy is heading, the dollar's dramatic drop in value relative to other currencies and these perpetual wars our gov't perpetuates which is leading us as a nation to financial ruin. There are no good investments, equity or fixed income. Frankly, I haven't a clue where to invest. Forget real estate for know. I just don't know.

[Norma]

Mike - allow me please to gently to restate what FMF stated in his post. As Christians we know that God holds the future. He cares for and provides for the simple little bird. We are created in His image and He cares so much more for us...seek Him first and learn to look at life through eyes fixed on eternity. Grab ahold of hope, friend.

[That One Caveman]

"But seek FIRST his kingdom and his righteousness"

"First" is the hardest part for most people. We're raised to be self-sufficient, self-reliant, and self-confident. It takes a near-miracle to break the focus on self and to allow yourself to become God-sufficient, God-reliant, and God-confident. I must admit that I'm not there yet, either, but I do know where to find hope when I think all is lost.