The Risks We Can't See and Other Points to Ponder

Oct 27, 2021
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Stay humble

“The march upwards from the pandemic lows has led many traders to believe they are investing geniuses. After all, every buy-the-dip purchase is a winner (if you ignore the math behind it), every stock selection shows your investing savvy, each trade more proof of your acumen. Humphrey Neill, regarded as the father of contrarian analysis, set those folks straight decades ago: ‘Don’t Confuse Brains With a Bull Market.’”

– The Big Picture blogger Barry Ritholtz in a 9/29/21 post about the confidence an extended bull market can instill in investors, often to their detriment. Read more at bit.ly/3aTKmRu.

The risks we can’t see

“Surveys of market participants will yield lists of top risks, and ironically the most commonly cited risks are the ones that are already priced into the markets. It’s the risks no one is talking about or few are concerned about that’ll rock markets when they come to surface.”

– Longtime financial reporter and Chartered Financial Analyst Sam Ro, describing one of “10 Truths About the Stock Market” in a 10/15/21 article in his new TKer newsletter. Read more at bit.ly/2Z9DKfB.

What could go wrong?

“When a central bank is purchasing the vast majority of sovereign bond issuances significantly below market rates it is incentivising reckless indebtedness and forcing savers to go to much riskier assets. Both are negative outcomes of QE that outweigh the alleged benefits.”

– Spanish economist Daniel Lacalle, a fund manager, author, and lecturer at the IE Business School in Madrid, in a 10/23/21 tweet. Read more at bit.ly/3Ce61QC.

Should I stay or should I go?

“Too much of our deliberations about work are self-referential. ‘What you want to do’ is important, but it is not the most important factor. In the math of the Apostles, we belong to Jesus because He bought us with a price. This invites us to shift our thinking from ‘What should I do?’ to ‘What does my trustworthy leader want me to do?’”

– Vocational coach Chip Roper, in a blog post for the Nashville Institute for Faith and Work on 10/5/21. He pointed to the most common reasons why record numbers of people are quitting their jobs — and uncommon career advice found in God’s Word. Read more at bit.ly/2ZuLity.

Written by

Matt Bell

Matt Bell

Matt Bell is Sound Mind Investing's Managing Editor. He is the author of five biblical money management books and the teacher or co-teacher on three video-based small group resources. His latest book, Trusted: Preparing Your Kids for a Lifetime of God-Honoring Money Management, was published by Focus on the Family in 2023. Matt has spoken at churches, universities, and conferences throughout the country and has been quoted in USA TODAY, U.S. News & World Report, and many other media outlets.

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