Dear Chuck,
With the new Trump tariff wars, I fear the stock market will tank, and my retirement savings will be gone. Are you advising people to get out of the market during this downturn?
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Terrified of the Tariffs
Dear Terrified of the Tariffs,
I can’t give you investment advice; however, I can address some issues that are expressed or implied in your question. My intent is to offer you some biblical principles to avoid the most common mistake any investor makes, which is to buy high and sell low.
Perspective on the market
The year 2025 is shaping up to be one of the most volatile in recent history. We have seen declines in the markets year-to-date, with more declines possible. But remember, the S&P is still up more than 100% over the last five years, a historical bull run. While some panic, for many, it is an opportunity. It helps to think of it like a roller coaster that has ups and downs but consistently grows over time, increasing in value.
In a recent interview, Warren Buffett said something to the effect that if the value of your house went down, would you immediately decide to sell it? Surely not! Wouldn’t you continue to live there and wait to sell until the value increased? Owning stock in a company is very similar. Forget about the ups and downs of the stock market price.
“Some people should not own stocks at all because they get too upset with price fluctuations. If you’re going to do dumb things because a stock goes down, you shouldn’t own a stock at all” (Warren Buffett).
Historically, recessions typically last an average of 13–18 months, and then growth returns. The key is to be able to endure the fluctuations in your stock portfolio without making a reactionary decision to liquidate when the prices are at their worst. Obviously, the stocks you own should be evaluated consistently to factor in market changes, poor management, and other forces that could impact long-term value.
Age-adjusted risk
Investments should be analyzed by risk as you age. If they have historically weathered the storms, adjustments may be unnecessary. Most professional advisors stress the importance of reducing risk prior to and after retirement. In addition, the Bible stresses the importance of diversification, which is another way to reduce risk.
“Give a portion to seven, or even to eight, for you do not know what disaster may happen on earth” (Ecclesiastes 11:2, ESV).
Seek many counselors. Think of investing like planting a tree. It needs decades to grow. Digging it up and moving it every time there is a storm will interrupt its opportunity to grow.
Buy low, sell high
Markets move on sentiment or emotion. People take action when they are fearful or greedy. The goal is to avoid following the crowd in the wrong direction. Like someone yelling fire in a theater, many may be crushed by the panic to escape instead of waiting to see if there really is a fire.
John Templeton famously said the best time to buy stocks is at the point of peak pessimism and fear, and the best time to sell stocks is at the point of peak optimism.
Buffet says that the poem “If” by Rudyard Kipling is good to ponder during market turmoil. It is a reminder to avoid panic in the midst of market fluctuations, to ignore the fears created by the “what-ifs,” and to patiently wait things out.
Dealing with fear
We are called to live one day at a time. Only our heavenly Father knows the future. When we try to enter His realm, we can be overcome with fear and anxiety. That’s why Jesus’ instruction in Matthew 6:33–34 is so important:
“But seek first the kingdom of God and his righteousness, and all these things will be added to you. Therefore do not be anxious about tomorrow, for tomorrow will be anxious for itself. Sufficient for the day is its own trouble” (ESV).
“He will give them to you if you give him first place in your life and live as he wants you to. So don’t be anxious about tomorrow. God will take care of your tomorrow too. Live one day at a time” (TLB).
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will provide encouragement by bringing God’s Word into your daily life.
Chuck Bentley is CEO of Crown Financial Ministries, a global Christian ministry, founded by the late Larry Burkett. He is the host of a daily radio broadcast, My MoneyLife, featured on more than 1,000 Christian Music and Talk stations in the U.S., and author of his most recent book, Economic Evidence for God?. Be sure to follow Crown on Facebook.
Dear Chuck,
With the new Trump tariff wars, I fear the stock market will tank, and my retirement savings will be gone. Are you advising people to get out of the market during this downturn?
Get Our Latest News for FREE
Subscribe to get daily/weekly email with the top stories (plus special offers!) from The Christian Post. Be the first to know.
Terrified of the Tariffs
Dear Terrified of the Tariffs,
I can’t give you investment advice; however, I can address some issues that are expressed or implied in your question. My intent is to offer you some biblical principles to avoid the most common mistake any investor makes, which is to buy high and sell low.
Perspective on the market
The year 2025 is shaping up to be one of the most volatile in recent history. We have seen declines in the markets year-to-date, with more declines possible. But remember, the S&P is still up more than 100% over the last five years, a historical bull run. While some panic, for many, it is an opportunity. It helps to think of it like a roller coaster that has ups and downs but consistently grows over time, increasing in value.
In a recent interview, Warren Buffett said something to the effect that if the value of your house went down, would you immediately decide to sell it? Surely not! Wouldn’t you continue to live there and wait to sell until the value increased? Owning stock in a company is very similar. Forget about the ups and downs of the stock market price.
“Some people should not own stocks at all because they get too upset with price fluctuations. If you’re going to do dumb things because a stock goes down, you shouldn’t own a stock at all” (Warren Buffett).
Historically, recessions typically last an average of 13–18 months, and then growth returns. The key is to be able to endure the fluctuations in your stock portfolio without making a reactionary decision to liquidate when the prices are at their worst. Obviously, the stocks you own should be evaluated consistently to factor in market changes, poor management, and other forces that could impact long-term value.
Age-adjusted risk
Investments should be analyzed by risk as you age. If they have historically weathered the storms, adjustments may be unnecessary. Most professional advisors stress the importance of reducing risk prior to and after retirement. In addition, the Bible stresses the importance of diversification, which is another way to reduce risk.
“Give a portion to seven, or even to eight, for you do not know what disaster may happen on earth” (Ecclesiastes 11:2, ESV).
Seek many counselors. Think of investing like planting a tree. It needs decades to grow. Digging it up and moving it every time there is a storm will interrupt its opportunity to grow.
Buy low, sell high
Markets move on sentiment or emotion. People take action when they are fearful or greedy. The goal is to avoid following the crowd in the wrong direction. Like someone yelling fire in a theater, many may be crushed by the panic to escape instead of waiting to see if there really is a fire.
John Templeton famously said the best time to buy stocks is at the point of peak pessimism and fear, and the best time to sell stocks is at the point of peak optimism.
Buffet says that the poem “If” by Rudyard Kipling is good to ponder during market turmoil. It is a reminder to avoid panic in the midst of market fluctuations, to ignore the fears created by the “what-ifs,” and to patiently wait things out.
Dealing with fear
We are called to live one day at a time. Only our heavenly Father knows the future. When we try to enter His realm, we can be overcome with fear and anxiety. That’s why Jesus’ instruction in Matthew 6:33–34 is so important:
“But seek first the kingdom of God and his righteousness, and all these things will be added to you. Therefore do not be anxious about tomorrow, for tomorrow will be anxious for itself. Sufficient for the day is its own trouble” (ESV).
“He will give them to you if you give him first place in your life and live as he wants you to. So don’t be anxious about tomorrow. God will take care of your tomorrow too. Live one day at a time” (TLB).
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will provide encouragement by bringing God’s Word into your daily life.
Chuck Bentley is CEO of Crown Financial Ministries, a global Christian ministry, founded by the late Larry Burkett. He is the host of a daily radio broadcast, My MoneyLife, featured on more than 1,000 Christian Music and Talk stations in the U.S., and author of his most recent book, Economic Evidence for God?. Be sure to follow Crown on Facebook.
