Many financial “experts” are saying that since this is an election year and the DOW Jones Industrial average is off to its best start since 1998 that now is a good time to invest in the stock market. So as followers of Jesus Christ, the question is should we invest in the stock market and is now a good time to invest?
There are many who oppose investing in stocks, saying that buying stocks is the same as gambling. The argument goes that since stocks are bought with the hope they will increase in value that this is a type of gambling. I can understand how someone could come to this conclusion, however I believe there are major differences between gambling at a casino, or buying a lottery ticket and buying stocks. Gamblers and lottery ticket buyers risk money, which they know they will probably lose, in the faint hopes of making money quickly. Wise stock market investors are buying partial ownership in a company in the hopes of making money over time through using God given ability in researching and gaining knowledge of their investments.
Proverbs 28:20 says “…A faithful man will be richly blessed, but one eager to get rich will not go unpunished”. I believe this verse helps us to separate gambling from investing. The difference is in the intent. If our intent is driven by a “get-rich-quick” attitude and our success based on nothing more than “luck” then we would certainly be considered one eager to get rich, as described in the second part of the verse. But one who studies and learns about their investments and invests for the long term would be considered a faithful man as described in the beginning of the verse.
If our intent is steadily growing wealth through legitimate means, I believe this is a picture of a wise steward and honoring to God. Proverbs 21:5 says “The plans of the diligent lead surely to advantage, but everyone who is hasty comes surely to poverty”. The parable of the talents (Matthew 25:14-30) is an excellent example of the encouragement Christ gives us to invest our time, talent and money as wise stewards of the resources God has given us. There are other verses in the Bible that not only encourage us to invest, but give guidance in making investment decisions. (Ecclesiastes 5:13,14; Ecclesiastes 11:2; Proverbs 27:3-4)
So we come to the conclusion that with the right intent, investing in the stock market is something that wise stewards of God’s money may be involved in. So the next question is should we invest now, based on the recent upward movement of the market? I believe the answer to that is also found in the Bible. If we review the two verses in Proverbs above, we see we must avoid that get rich quick attitude. I believe this means that a wise steward will have a long term approach to investing and not a get rich quick attitude. In other words, we will not try to get rich quick by jumping in the stock market simply because we think it is going up.
James 4:14 says “You do not know what will happen tomorrow”. So we must be very cautious about investing in the stock market solely because we think it is on its way up.
So the answer if we should invest in the stock market soley because we think it is going up is inconsistent with God’s principle of avoiding the "get rich quick" attitude. Our investments should be based on research and understanding of the stocks we are buying with a long term view, not trying to predict the future and make a quick dollar. I like the way The Living Bible translates Proverbs 21:5 “Steady plodding brings prosperity, hasty speculation brings poverty”. Isn’t it amazing that God’s Word even gives us instructions on how to invest in the stock market?!
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