Today on MoneyLife with Chuck Bentley
Tuesday, March 17, 2009
Rusty Leonard: Stock Market Update
We recently received an e-mail from a listener in Rockford, Illinois, who wrote from Moscow, Russia to share how Crown had made an impact on his family. The listener and his wife wanted to adopt a little boy from Russia and had to stand before a judge in Siberia and explain how they could support the child. They were able to testify to being debt-free, living on a budget, and applying God’s financial principles. The judge approved the adoption and the listener says he believes so strongly in the work of Crown that he brought it into his church. He and his wife are praying people there will catch on to stewardship. This is a great example of becoming debt-free to fulfill God’s purposes for your life. Ann and I once pursued the adoption of a little boy from Russia, too. We made plans to go to Russia to get the child when the orphanage there closed and the country began prohibiting foreign adoptions. So, it's special to know God has used Crown to help a child be adopted. I'm thankful for this listener’s testimony and for allowing God to use him in his church. God’s way is better than the culture’s way. We must be willing to be different to fulfill God’s purposes in the world.
Chuck: Rusty, the market has lost a lot of value in the last few months. What's going on? Rusty: The downturn in the market is a negative reaction to policies proposed by President Obama. The market had been ready to go up before the Obama Administration failed to produce a plan to solve the banking crisis. A lack of confidence in the banking system caused a dramatic market sell off. The market was over sold, so there was a rally last week. I expect that could continue through the rest of the month, though the Dow lost a few points yesterday. I don't know if the market has bottomed out and whether now is the time to get back into it. It appears the worst may be over according to market history. Despite some talk, we are no where near a depression. This is a good time to start thinking about getting back into the market over the next 6-9 months. Being optimistic is a core value that works in the long run. It's difficult to call the market on a short-term basis, but it has always shown long-term growth. There's a high probability the market will rise over the next five years according to market history. I'm also optimistic aboit American capitalism. I believe people are overestimating the power of the president and underestimating capitalism. Capitalism has faced other socialistic policies before; they hindered it but didn’t hold it back. Money can still be made. Chuck: Are "bear funds" a good way to go in this market? Rusty: Bear funds have been successful recently, but may not be going forward. Some bear funds are closing up, because the opportunity in this recession is fading. I'm encouraging investors in those funds to change strategies. Current stock prices reflect most of the economic damage that’s been done. I expect more banking problems to arise and I think the government would be wise to make the a loan to the Federal Deposit Insurance Corporation (FDIC)to keep depositors' confidence up. I think the Troubled Assets Recovery Program (TARP) has been misunderstood. It wasn’t meant to fix everything that’s wrong with the banking system, just to keep it from collapsing. It worked and it was a better option than a collapse which would have triggered an instant depression. Now, whether it only postponed a depression will depend on future government policies. The banking system looks healthier now than last year. TARP bought time, it is working, but very misunderstood. Unlike some of the stimulus programs, it was actually needed. Now could be the best time to invest in our lifetime. The chances of making a return after this recession are good. Chuck: Thanks, Rusty.
We recently received an email from a listener who came up with an acrostic for "STEWARDSHIP." S – start on a budget, give, save, and spend I'm sure we’ll get many request from listeners for this. I like it, because it’s effective in expanding our thinking. So often people only think of stewardship as a giving program. Stewardship is comprehensive; it covers how you make money, manage it, and use it. It determines whether you’re considered faithful. Crown will reach the end of its fiscal year March 31. We depend on the generosity of those listening to keep us on the air. I know many people have been hit hard by this economy and are unable to give. Some are in a position to help because of practicing God’s financial principles for years. If you are one of those, please make a gift before the end of the month. We want to finish the fiscal year strong. You can make a gift online, or by calling 800-722-1976. It's also very encouraging to us when we hear from our listeners. I hope you’ll join us, send a gift, and experience the joy of meeting needs with God’s Word. |
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InvestingInvesting isn’t simply multiplying and storing assets without purpose. |
Why InvestThrough God’s providence, He provides wealth from investing to many. Why? So His people can exercise giving in order to meet the needs of others. |
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How to Make the Right Investing DecisionsMany people today are finding it increasinly difficult to know which is the right step to take in their investing decisions. |
The Five Tier SystemThe suggested five-tier system can provide some guidance for getting started in an investment strategy. |
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Other Resources: |
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My guest today is Rusty Leonard, Founder and CEO of 
Rusty Leonard of
