Did Anyone Forsee The Financial Crisis?

When a crisis like this is happening, there are always a few people out there who claim to have seen it coming and are eager to let us all know about it. There are also people who are always bullish or always bearish and those people can be sure to be right some of the time. Not long ago, I interviewed a couple from California, I will call them Greg and Joyce who shared their investing experience with me. They were referred to me by their Financial Advisor from Merrill Lynch who thought they would have some interesting insights. With great humility, they shared some thoughts on how they have avoided much of the devastation that has happened in the financial stocks.

The advisor was right! It seems that Greg, who is an attorney, noticed many years back that there was a period when credit became very easy and the extension of credit cards was so wide spread that it frightened him. Next clue for him was that many state usury laws were being changed or adapted that allowed banks and financial service companies to charge very high interest rates. Not only did this seem unfair to them, but it also started them to be concerned about the quality of those who were borrowing money at such incredibly high rates. While Greg was noticing the changes in banks and credit, Joyce was observing the changes in what media companies considered "family" entertainment. They became very proactive in changing their portfolio to get rid of companies that were not consistent with their Christian world view. This is not to say that their portfolio has not suffered at all during a bear market period. It's just the degree to which they have suffered which is quite a bit less than the market as a whole.

We have urged you on many previous MMM's to change the way you are thinking if you are not using your faith based experiences and understanding of God's calling when it comes to your investments. There are so many great places to start this process via organizations like the NACFC (www.nacfc.org); Kingdom Advisors (www.kingdomadvisors.org) or a new book that has just come out by an advisor in Massachusetts, named Jay Peroni who has written a book called The Faith Based Millionaire. Ask your own financial advisor for help in finding the right combination of screens and solutions to take advantage of this unique time in the market.

Psalm 119: 29-31 (NIV) "Keep me from deceitful ways; be gracious to me through your law. I have chosen the way of truth; I have set my heart on your laws. I hold fast to your statutes, O lord; do not let me be put to shame."

Personal note: The MMM will be appearing on the Christian Post (www.christianpost.com) website as well as to your personal emails. Feel free to visit this website to see other activities and ideas from around the world.

Monday Morning Message Sent 10/27/08

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