Crazy Money Day – Tulip Mania
It’s Crazy Money Day!
When people invest out of greed, envy, pride, or ignorance, things can get crazy! The tulip was introduced to Holland in the 1600s and the wealthy rushed to buy them. Speculators saw an opportunity. They entered the market seeking their fortune in tulip bulbs. What’s now known as Tulip mania occurred when investors purchased bulbs and prices skyrocketed. The price of one soon cost as much as a house. Prices eventually reached an unsustainable level and a correction occurred over the course of a week. The bubble burst and many tulip holders went bankrupt. I can’t imagine if that had happened today, but we have similar booms and busts even now.
Remember the dotcom and housing bubbles of the early 2000s? In January, GameStop stock rose more than 1,600% as the Reddit forum, WallStreetBets, urged on investors in an effort to punish hedge funds. People gained and lost millions of dollars within days. It was crazy! Investing can be precarious. Sometimes the markets are irrational. If you’re a believer, then you’re a steward of what God’s given you. Never jump into what you don’t know just because everybody else is! Do your research and don’t ignore basic fundamentals. An asset is worth only as much as its intrinsic value. When prices exceed affordability, they’ll crash. So pray for wisdom and check your motivation. Never invest borrowed money or what you can’t afford to lose.
And if you’re struggling with credit card debt, I recommend Christian Credit Counselors. They can create a debt management plan that will work. For more information call the Crown Helpline at 800-722-1976 or visit online at crown.org/ccc.