Tuesday, February 17, 2009

In these times, in what should you invest?

As a friend asks this question, I point out:

Investment is a matter of personal circumstances and of one's personal risk-appetite, so no one can tell you what to do. Others can, at best, make recommendations which you have to evaluate and then accept or reject as you feel appropriate because, at the end of the day, you are the person who makes any profits or losses, and you are the person who carries the risk.

however, in general terms:

who wants to invest today in shares (or stocks, as Americans call them)? Even if you do want to invest in shares, which sector do you go for? Assuming that you count out the defence sector for ethical reasons, in so far as there are any likelihoods today that can be seen, the only possible growth sectors may be Infrastructure and "green technologies", both of which may be probably now too expensive in terms of P/E? Specifically given that it is government investments that are going to drive these sectors with all the resulting distortions that government interventions always create?

so do you go for bonds? Aren't these too expensive too? And which company's or government's bonds do you trust?

what about cash? If you are sitting in cash, that is being devalued by the day, and will be devalued even more because all governments are printing too much money.

Gold? Isn't that too expensive as well?

Though of course you should have a certain proportion of your money in each of the categories here discussed (as well as real estate, in spite of the current situation - at least the minimum real estate that you need to live in!)....

What about oil/ gas? Well, I have said that I expect it to shoot to $100 within a few weeks - but don't trust my judgement! Look at the facts and make up your own mind!

What I do say, hand on heart, is that you should invest only in businesses that you understand, and preferably where you have personal reasons to trust the management (not merely looking at the paper qualifications and so on).

When I look at the investment opportunities that meet these criteria, there is more than enough to soak up the money that I have available!

Most of my money, however, is invested in things of eternal significance - because, as Jesus the Lord once pointed out, it is where our money is that our heart will be also - and I want my heart to be focused on God, on His Kingdom, on blessing for everyone on earth, and on caring for the creation.

If I do that, Jesus said, then He will look after my daily bread, and I need to be neither afraid nor anxious.

The peace of mind and heart that comes from trusting Him is worth more than all the profit in the world.

Specially in view of the following unlikeable fact:

one day (that's coming up too fast for comfort!), I'll be confronted by the demand to give all my Accounts to the One who owns me and has loaned me for a season everything that I have - not only the money and other resources I have, or relationships that I enjoy, but even the body that I inhabit. Sphere: Related Content

1 comment:

Papa Chuck said...



Charles Kelley