Faith vs. Fear

These days, we are instantly aware of everything that's going on. That's a double edged sword, though. For example, who with any money in the stock market today, in the middle of the Credit Crunch (I prefer to call it the "Debt Disaster") isn't quaking in their boots and poopin' in their pants? Here are some paraphrased financial headlines that I can recall:

-Worse Crisis Since the Great Depression
-Another Bank Crashes - Who's Next?
-Consumer Confidence Crashing
-yadda yadda crashes/fails

Yet, after a few minutes chatting with a few folk who actually work right in the market, it always seems that there is a missing perspective. Working at a downtown coffee shop allows me to speak directly to the customers who are largely from the financial sector. After a few moments chatting, here is how the above headlines transformed:

-Worse Crisis Since the Great Depression - but... worse one day losses in the market occurred in the 80's.

-Another Bank Crashes - Who's Next?...but, what do you expect when banks are giving mortgages to people without jobs, and then giving them secondary loans based on the 'equity of their new homes'??

I had no idea they were lending like that!
I never read anywhere a comparison of one day drops like that.

When you read a headline, don't become instantly fearful, but instead seek out a balanced perspective from someone who is right in the midst of it.

In times of fear, we need faith. Remember that faith is the opposite of fear. Yet, faith without wisdom isn't real faith. You can't just sit there and say "My 'financial advisor' said that my RRSP portfolio will recover so I'm just going to hold." without doing some due diligence yourself. You have no one to blame but yourself for lack of knowledge. It's all out there.

Seek knowledge and wisdom before buying, holding or selling.

"Mr. Top Investor says "Sell All Now!"

Do you do it? Maybe. But do your due diligence.

I have a random stock holding of 500 shares of some random company. It's all random. My research was random, my purchase was random and my entire relationship with the shares has been less-than-random. Can I blame anyone but myself for this total flop? No. Instead I should slap myself for wasting my money and taking away a meal out from my wife and I!

So, a proper balance of knowledge, wisdom (try and fail of us and others), and faith (read the book of James in the Bible for more on faith) will strengthen our ship for stormy seas.