Think Differently About Risk
Article originally hosted and shared with permission by The Christian Economic Forum, a global network of leaders who join together to collaborate and introduce strategic ideas for the spread of God’s economic principles and the goodness of Jesus Christ. This article was from a collection of White Papers compiled for attendees of the CEF’s Global Event.
Investing as a Christian
I love meeting, talking to, and connecting with other like-minded investors.
Part of that involves attending and speaking at various conferences where Faith Driven Investors and Faith Driven Entrepreneurs are gathering all around the world. There is, however, a downside to Christian conferences. And that is the fact that we’re all Christians.
Not that being a Christian is a bad thing. It’s just that sometimes, when Christians gather, we all nod our heads at the same thing. We comment on subjects about which we all share the same opinions. And we leave never having been challenged—at all. This is not true of all Christian conferences, of course, but it can happen.
I attended a conference where someone presented on inflation. After about an hour of hearing fellow Christian investors talk about the different ways to hedge against inflation—whether through precious metals or cryptocurrencies or any other ideas along that vein—I realized that we were all nodding along to something that I actually deeply questioned.
So, I raised my hand and asked: “Where is the spiritual integration in buying gold bullion?” No one answered, which I interpreted as encouragement to continue. So, I elaborated by wondering aloud why a group of Christian investors should worry about hedging against inflation when we should really be hedging against Judgment Day.
It’s my belief, I explained, that the body of Christ simply must come to understand that our investment capital can, and oftentimes should, be placed in different investment vehicles. And it should be placed in different investment markets where there is a chance for real spiritual growth and Kingdom advancement.
If we all believe that we are going to one day give an accounting to God for the way we’ve spent our lives on earth, it’s hard to imagine that God is going to ask us what we did to hedge against inflation—especially, when we know for a fact that He’s going to ask us how we loved and served the people He brought into our lives. He’s going to want to know what we did for the least of these. He’s going to want to know what we did with the talents He gave us.
After that, there was a lively debate and discussion. What I took away from that experience has nothing to do with any opinion anyone expressed, my own included. What I learned is that a room full of Christian investors can look a lot like a room full of unbelieving investors. Both groups want to mitigate risk. Both groups want their assets to stay safe and secure. Both groups want to hedge against certain unknowns.
The difference is—or at least should be—that Christian investors have a different understanding of the unknown. Or, to put it another way, Christian investors have a relationship with Someone to whom nothing is unknown. Shouldn’t that change the way we invest? Shouldn’t that change the way we live?
Hedges and Patterns
Keep in mind, this isn’t something I’m observing “out there.” This is happening to me. If I look at my life, much of what I do regarding my investments amounts to a hedge. Yes, I believe, and I trust in God, but just in case…
The question I’ve had to ask myself is that if I truly believe all that God promises in the Bible, would I act the same way I do, think the same way I do, invest the same way I do? The concept of hedging in my own life has all too often looked as if it’s a hedge against God’s promises not being true—just in case He fails to clothe the lilies of the field, just in case He doesn’t actually have a plan to prosper me.
This is a dangerous trap.
Rather than renewing our minds, we’re falling right into the trap of the worries of the world and the deceitfulness of riches. If we remember the Parable of the Sower, this is the last obstacle that prevented the 30-, 60-, and 100-fold return. There’s a sense that we trust God. Of course, we do. If we say we’re Christians, then we say we trust God.
But too often, our actions reveal that what we really trust is our bank accounts. If we spend the majority of our time and focus on building up resources for our enjoyment and safety, what does that tell us about whether we’re serving God or Mammon?
When we spend all our energy and efforts hedging against risk, hedging against inflation, hedging against this, hedging against that, our entire life becomes a hedge. There’s the possibility that the faith we declare might only be a ticket to the afterlife. If we doubt the promises of God so severely that we place all our trust in our own ability to manage risk, then it’s possible we may not believe in what God has actually promised us.
Risky but Not Reckless
This sounds accusatory. I know that. Frankly, what I’m saying here causes me just as much discomfort as you may be feeling right now. What I want to do is encourage both of us to spend time on our knees asking God to search our hearts and show us where and how our investments might better serve Him.
To do anything else would be too risky. This isn’t to scare you into taking risks for God. This is an invitation to share in the full experience of knowing and loving our Savior, Creator God. When we avoid risk, we often end up avoiding what God is doing in the world.
Whether in investing or in giving, I don’t want to encourage you to recklessly throw money at projects and hope that something good comes of it. There’s still wisdom and discernment required in all things.
Keep in mind that the very process of endeavoring to step out to make investments with wisdom brings us into a relationship with others who are trying to accomplish the same mission. This is the community God is calling us toward.
And there is a process of seeking out counsel from advisors and peers, both home and abroad, that keeps God at the forefront. Finding other Christ-followers who are seeking to make wise investments broadens our understanding of what God is doing and allows us to participate in His work. Yes, that can be messy. Yes, it’s time-consuming. But it’s so much richer.
I hope to invite you to see that God may have more in mind than just helping you hedge against inflation and save for retirement.
Asking Risky Questions
We have to ask ourselves: Do we really believe that? Do we really believe that God is working in and through the faithful investments of His people? Do we really believe that He will take care of us? Do we really believe that He’s in complete control over all the money and markets in the world? Do we really believe that every investment has an impact?
Those are risky questions to ask because they may themselves require you to take some risks. But the riskiest thing we can do is play it safe. Pray and seek the will of God. And open up your head, heart, and mind to the fact that He may have something incredible in store for you—if you’re willing to take the risk.