If you’ve ever invested in stocks or mutual funds, you’ll probably have come across a disclaimer like this:
“Past performance is not a reliable indicator of future results.”
This phrase is meant to warn us and give us pause before we press the “Buy” button. We shouldn’t assume that an investment will continue to succeed in the future just because it’s done so in the past.
But there’s a secondary meaning that can be read into that disclaimer, too.
We shouldn’t discount or overlook an investment opportunity simply because it has performed poorly recently. It could well turn around and gain ground.
It’s this last meaning of the disclaimer that we see exemplified in several characters in the Bible. It applies to our own lives as well:
Past failures in our lives don’t mean that God can’t still use us.
They’re not a reliable indicator of our future results or success.
Do you play the stock market?
What kind of an investor are you? Do you engage in active trading, or do you prefer to buy and hold investments?
Active or “day” traders believe that through rapid, speculative trading they can gain a larger profit more quickly than through passive investing.
The “buy and hold” strategy, on the other hand, is based on holding stocks for a long period of time with the idea that their value will gradually increase over the years.
It’s beyond my pay grade to tell you which form of investing is better: after all, The Faith Cafe isn’t a financial blog.
But I do have a hot investing tip for you.
This tip comes from an unlikely source, but don’t worry, I’m not engaging in insider trading or passing on confidential information.
This sure-fire investment advice comes from the Book of Proverbs in the Bible.
Would you like to hear it?