Constructing a new vision of financial management
[Investment and Financial Management and Confidence] 2 Combining inspiration and financial management insights to illuminate your path ahead
Translated by Guimei
We, as a couple, are still living in the wonder of God’s grace as He brought our precious son into the world. My baby boy is always smiling and growing up fast. We hope that his middle names: Alder and Brighton, will reveal some of the attributes of the Lord Jesus: the root of David, the tree of life, and the bright morning star (see Revelation 22). On the day Alder was born (March 7, 2009), I told my wife that he would begin the “Alder Renaissance” in the stock market. Judging from this photo, the baby seems to be just as surprised by this as everyone else.
No matter what happens tomorrow, brothers and sisters, I want to congratulate you... because you survived the No. 1 financial crisis!
This financial crisis consists of several different stages, each of which leaves us with different feelings:
‧Phase A: One day in 2008, when I walked into Wachovia, no one was sure whether the bank would still be open tomorrow? That day, the global financial system almost completely collapsed. A lot of peoplefeel scared...I wonder if I can still receive money in the future?
‧Phase B: During that period, I had to spend twice as much to fill up my car with gas. The price of oil was skyrocketing, and suddenly it collapsed. A lot of peoplefeel out of control…I wonder if there are enough funds to pay the bills with rising prices.
‧Phase C: In March 2009, many investors lost hope in all types of financial risks, and manyFeeling loss, confusion and despair……because of the crazy ups and downs in asset values.
As the world moves towards a global economy, people are moving from one crisis to another, such as the Asian financial crisis in 1998, the Y2K crisis in 2000, the collapse of Enron, the technology bubble, the 911 incident, etc. If moving from one crisis to another is the new normal, how will the Lord Jesus, the bright morning star, illuminate the rough road for Christian feet?
1. We can look to God’s glory and seek God’s will. For example, for many people in African countries, the feelings we have recently experienced are the only feelings they have ever had about money.
2. We can obey the life vision given to us by the Holy Spirit and provide for our family’s needs.
3. We can trust God to provide for us when we give generously to those in need in the world. For example, recently, our community came together through an artist’s exhibition of African photography. He has sold many works at So Alive Gallery (www.soalive.org) and online (http://dvinez.zenfolio.com/). All proceeds from the charity sale will be donated to African orphans in urgent need of funds.
4. We can draw on strikingly similar lessons from recent experience, history, and the Bible to prepare for the next crisis. For example, stock market rallies like the current one have occurred before, and some call it "The Twilight Zone" - a period of time when stocks are rising but the sun is not clearly visible on the horizon. For some companies, the sky may represent the coming of night (GM), and for others (such as emerging automotive companies) it may represent the approaching of dawn.
5. We can receive encouragement from our Christian community (the body of Christ). I recently had the pleasure of meeting with twenty experienced individual investment advisors in Naples, FL. It's inspiring to see this group of people so passionate and talented about customer service. They are extremely eager to protect their clients' assets, while also actively adapting to the unpredictable investment environment and looking for the next opportunity. Each of them has a serving heart: putting customers first, improving the system, and creating better value. At the end of the meeting, everyone put aside their egos, learned from each other, and held hands in prayer. Some people joked that we almost sang Kum Ba Yah My Lord.
6. We can pray to God for such wisdom, so that no matter how the world is ups and downs, we can still live in peace! I've noticed that everyone has some form of investing style, even if they don't know it. It's important to take some time to write down some of your current thoughts on how to decide how to invest. This is what is called a personal investment program.
If you would like to walk this journey together, please contact me via email…
Wish you a bright journey!
Eric Fu eric@visioncapitalmgt.com
To prepare a good personal investment program, you should answer the following questions:
a) What are the main factors affecting financial markets in this decade? If we are right, where are the opportunities and risks?
b) Who provides us with wise financial advice? Who supports us? Who challenges us?
c) How to identify the conditions in various financial markets? Are we attacking, careful, or defensive?
d) What is our long-term risk tolerance for various investment portfolios? Has our risk tolerance changed now? If there are changes, why?
e) How to reduce risk through diversification? Do our investments include at least seven asset classes that behave differently in normal times and crisis times?
f) What are our important criteria when selecting investments/investment managers?
g) Feel comfortable with our investment portfolio? Otherwise, what can you do to feel at ease?
Author profile:
Eric Vogen, founder and CEO of Vision Capital & Management, holds a master's degree in business, holds a financial planner (CFP) certificate, and has more than 20 years of practical experience in securities investment.
Translator profile
Reading is my lifelong love. In 2005, I first started exploring translation work by chance. I am willing to pursue a lifelong career. In 2007, I translated the book "Blueprint for the Kingdom of God" written by Pastor Ma Zhengyuan.