In recent weeks in both my businesses, I’ve heard many, many people express concern, fear and anger over what’s happening on Wall Street and Main Street. They ask me what’s the best thing to do? I know they want investment advice so I ask them do you truly want to hear what I think you need to do first? Every one says yes but some are not pleased with my answer.
I tell them to read Psalm 37:1-9 in the Bible.
Fret not yourself because of evildoers;
be not envious of wrongdoers!
For they will soon fade like the grass and wither like the green herb.
Trust in the LORD, and do good;
dwell in the land and befriend faithfulness.
Delight yourself in the LORD,
and he will give you the desires of your heart.
Commit your way to the LORD;
trust in him, and he will act.
He will bring forth your righteousness as the light, and your justice as the noonday.
Be still before the LORD and wait patiently for him;
fret not yourselfover the one who prospers in his way,
over the man who carries out evil devices!
Refrian from anger, and forsake wrath!
Fret not yourself; it tends only to evil.
For the evildoers shall be cut off….
How is what God said important for today?
He starts off by telling us not to get all worked up over what evildoers have done. We’re mad at what these people did on Wall Street but he says they will fade. He says trust Him and do good even if it seems no one else is. Be happy you’re with Him and he will give you the desires of your heart (as impossible as that may seem now. He doesn’t say maybe but will).
He not only wants a committment but assures us it will bring us out of any darkness we now have. He wants us to be patient. Most of all, he wants us to refrain from anger. He knows we can get mad, who wouldn’t now but he wants us to try not to because it will lead us to be evil too. The evildoers will suffer but it’s His job not ours.
I know this blog has been allowed not only to provide investment advice, but to help and share what blessings God has placed on my heart. I too could’ve been among those who prospered at the expense of so many if not for God allowing me to fall – twice, in order to finally wake up and smell the roses.
Whatever you’re facing, I know if you trust the Creator of everything, He won’t let you down.
God Bless and have a most blessed weekend.
Peter
Ok, most of my money is invested in the TSX and a bit in the DOW. I have been wondering with to do with this, hold or not.
I’m starting to think,maybe God, through your posts and all the red flags we see all over the place, is trying to tell me one simple thing: ” SELL YOU IDIOT !!! ”
Peter:
Thank You for sharing your knowledge and insight.
Dear Mr. Grandich,
Do you agree with the Bank of Canada forecast for a 10 % decrease in real estate values early this year followed by a recovery late in the year and stability by 2010?
I have heard some analysts say that ,.. well, it is more or less a lie and that the real estate market is likely going to go down even further after 2010, with values maybe down by 30 or more percent than they already are.
By the way.. is ” recovery” a recovery to what we had before the crash? or is “recovery” a slow growth process over many years back to where we were before the crash? ( In real estate ).
Thank you,
Kevin
Peter,
I’m facilitating a retreat for my parish at the end of the month. I intend to engage the group in a discussion on the practical applications of the bible especially the Sermon on the Mount. Your post gives me even more to talk about.
The bible is not just there to make us feel better in times of need but rather offers a practical guide on how to live our lives in all times. Much of what is written in terms of how we should think and behave is many times just the opposite of what we say and do as you so aptly illustrate above. Focus on him and the answers will come. Focus on ourselves… and we can see what that brings.
Thanks for sharing and don’t ever be shy in doing so.
Peter,
Thanks again for the wisdom and the clarity that you share and put forth here for everyone to see.
You are making a big difference in the lives of many. Keep it up. God Bless.
Peter – May God keep on giving you double portion of His Spirit, for the insight and boldness to write the truth about Him, riches and the hard economic conditions we are in today. And may the good Lord wake up every reader and subscriber you got, to the truth, in the same manner He did with you on 2 occassions of your life, so that He’ll draw each one closer to Jesus Christ through you.
Thankyou Peter for your reflection on the psalms. This psalm and a general approach to seek God is the perfect antidote to the entire global crisis which could worsen if anger and hostility are not kept in check. Please continue to share your thoughts. They have inspired me very much. God Bless.
Hello Peter,
Thank you for everything that you do for us. I was looking back at this update you gave on the markets a few days ago and have couple of questions.
“If and when DJIA 8,000 and 800 on S&P 500 is broken to the downside by more than 1% on a closing basis, we should see a rather sharp fall of at least 5%. At this point, I may just start to look at some long equity positions both here and abroad. Stay tuned.”
1. After some of the developments in the last week or so, do you still feel this way?
2. If the time comes and you decide to take some long equity positions in the markets, would a mutual fund that is comprised of 33% TSX, 33% US markets and 33% foreign/overseas markets be a worthwhile investment?
I only have a few choices as to where I can invest my pension plan money and basically it boils down to something like the fund described above or a short term bond fund that is made up of a mix of Canadian government and Canadian corporate bonds. I have been sitting in the ‘bond fund’ for about a year and have avoided some big losses (thanks to you), but lately the bond fund has been losing money along with everything else. Your opinion would be much appreciated!
Thanks Again
Nick – I’ve been an idiot more than once in 25 years on Wall Street so I know how you feel. But make no mistake about it, God will never call you an idiot. He’s all love. It’s the evil one who wants to bring you down (not Madoff).As noted in my recent BNN interview, I sooner own Canadian stocks versus American if i had to own stocks.
No thank you average Joe for thinking what I say has some worthiness – Average Peter
Kevin – I don’t follow the Canadian real estate market closely but I don’t see much of a recovery anywhere, including for the Vancouver Canucks.
Mark – The Sermon on the mount is the blueprint for life. Too bad I failed to read it for most of my life. Have a great retreat.
Frank Thanks and lets hope it stays a positive influence because in this business you’re only as good as your last call.
Thank you Shelia and Patrick
James I’m playing it by ear so stay tuned to the blog
I’d like to offer two wonderful sources of living your life the way God intended as seen through the eyes of two incredible spiritual teachers. Both offer practical living (not theory) through biblical principals. You are sure to say “Why didn’t I see this before? It was right in front of me!” I did. : Emmet Fox “The Sermon on the Mount” and Anthony De Mello S.J “Awareness”. Both are books. May I suggest for far more fun, get on U Tube and type in De Mello and listen to ANYTHING he says. He’ll be the first to say ” don’t accept anything I say becasue I said it. Analyze it for yourself”. Completely new way of looking at life and very entertaining. You’ll get hooked as you say “That makes total sense. I need to reexamine life”
Please share your thoughts!
Dear Peter:-
All that Bible and Koran gobbly gook. All the evil doers also punch these tomes — to save their souls (if there is a soul).
Think deeply about this — Profit and interest and all their derivitives are evil,
The Bible and Koran are silent about these evils. There’s money in religion but none in atheism. And remember Each and every one of us was born an atheist. Golly Gee! Think about it!
But buy Gold anyways to save your self and your kith and kin.
Even Gold and Silver won’t save you.
I was in Europe just at the close of the second world war — nobody wanted any kind of money or gold then — they wanted food, coffee and smokes. You could walk into a bank (remember you were armed) and pick up all those gilt edged stocks and bonds and stuff them into your gunny sak. Those pieces of beautiful gilt edged instruments represented the lifetime labor of all those hungry, homeless, wounded, and sick people outside the bank. I believe we could see this again in spades soon.
We are entering a different world folks. If you want a practical guide for the flock to think about – think of grass roots organization to kick the Gangsters Out of Office and Board Rooms. And think about stopping these hoods from the printing of fiat money for nothing in the back room and issuing it as interest bearing instruments out the front. Gee whiz! and a good old ho hum to boot!
In those days after the war the Gilt edged instruments, worthless as they were, actually existed. Now days all they are are electron blips in a computer somewhere — Sorry about all these cogent observations. Cripes almighty!
Bob – I welcome all views so long as their done in good taste. I can’t speak for the Koran (but maybe somebody else can), but the Bible is anything but silent about evil. The problem is the flesh who tries to follow scripture but naturally eventually fails as we’re all sinners. The good news is Jesus knew that and took it all, every single sin to the cross. It’s in the rare moments when we realize the total awesomeness of this act and the suffering that he endured that we see good overcoming evil. Then people like me find ways to sin again despite all this. Yet God loves us just the same – AWESOME!!!!
Kevin – re: Canadian Real Estate and HOU
No matter what any RE agent (same family as Wall Street FA) tells you, or local media, RE in most of Canada, especially Vancouver and Toronto is about the embark on the same fate as most US major centers – ie – down…big.
Canada is 1.5 to 2 years behind the US bubble and bust and exhibiting the exact same traits if not worse. When the mortgage resets kick in it will be ugly. The US peaked and started trickling down in spring of 2006. When the resets kicked in and people had to refi at lower home values and next to no principle paid off that is when it got ugly. The same is coming in Canada. No subprime in Canada? – forget about it.. what was 40 year with 0 down to anyone with a pulse? same damn thing. Put a graph side by side and Canada has never averted a correction when the US has had one, do not kid yourself.
HOU is a short term trade when you are convinced oil is oversold and will bounce. It is NOT a long term hold especially when cantango is in effect and oil is volatile. When oil is in an established uptrend and there is no cantango or better yet, there is backwardation…. then load up. For now the only way you can make money on HOU is short term. Cantango and daily rebalancing of this ETF will kill you until then. DXO or a straight 1 for 1 on oil is a better way to go for oil. Once oil establishes an uptrend and cantango goes away I will back up the truck. Oil will not stay here for long. Once the production cuts from OPEC and non-opec kick in and all the exploration and company production shut ins take affect oil will rebound in a big way. The market has drastically overreacted here and presented us with a great opportunity soon.