Patient Investing

Are you a wise investor?

It’s been said that fear and greed are the two drivers of buying or selling assets. We must set aside emotional responses to economic news and keep Biblical principles in mind. Do careful research, seek wise counsel, or professional advice when deciding when and what to buy or sell. Remain diversified, be cautious, and patient.

Now, I don’t foresee our federal government exercising fiscal constraint by curtailing deficit spending, paying down debt, or limiting the printing of money. However, a crisis could force austerity measures upon us. Years ago, I said that we’re effectively practicing “Modern Monetary Theory.” This macroeconomic theory suggests that governments can issue their own currency and spend freely without relying on taxes or borrowing. This philosophy advocates that we print and spend our way out of fiscal problems and that federal debt doesn’t matter. I call it the “Monopoly Money Theory” because it’s foolish. Debt does matter! Money supply does matter!

When people lose confidence in their currency, a deeper devaluation is likely. Inflation is like an invisible tax the government passes along to us without our permission! Without a significant economic crisis to serve as a wake-up call, be wary of persistent inflation. Continually monitor the potential for escalating inflation if fiscal and monetary policy is not reformed. Don’t overreact or respond to fear or greed. Rather, pray for wisdom and discernment to know when best to buy and sell.

And if credit card debt is keeping you from financial freedom, let Christian Credit Counselors help. They can create a debt management plan that will work for you. For more information, visit online at crown.org/ccc.