At the end of every podcast, we like to ask our guests what they have been experiencing with God. Here’s Mike Arrieta with his lesson from the book of Daniel.

by Mike Arrieta

I remember when I first moved to Silicon Valley, one of my friends and mentors, Joie Chen, told me he was a venture capitalist. And he told me every single day he leaves the office around 5:30. And the reason why he leaves the office of 5:30 is because he’s exemplifying exercising his faith. It takes faith to leave the office at 5:30, go home to dinner with your family and then get back on at 9 or whatever else it is. And I asked him: How in the world can you do that, you know, like how can you get the best deals and still provide the best returns? He goes: Well, if I’m only working just as hard as everyone else, but I’m saying that I’m a believer, God’s basically just like a cheerleader for me. But I’m not truly trusting in what faith does it take for me to try to be the best investor but to work just as hard as everyone else?

So he pointed me to Daniel, and I never really studied Daniel, ever since then and probably never spent some time in it, until last week. We had a company that we were about to go into LOI with, and last minute he tells me he gets an offer that’s significantly more than ours. And I had a moment to realize what to do. I could either be like the rest of the world and compete on price alone, which the price is all predicated upon debt. If you’re competing as a secular buyout investor, or I exercise my faith and I trust wholeheartedly on God. And so I’ve been eating the book of Daniel like crazy over the past five days. I’ve been studying it in such a way of how a man trusted that God would legitimately save him multiple, multiple, multiple times, and how he eagerly prayed for God to intervene in his life and all the circumstances that he found himself in. So I am currently in the season of Daniel and just trusting the Lord like I never have before to get a place to trust.

Daniel 6 (NIV)

7 The royal administrators, prefects, satraps, advisers and governors have all agreed that the king should issue an edict and enforce the decree that anyone who prays to any god or human being during the next thirty days, except to you, Your Majesty, shall be thrown into the lions’ den. 8 Now, Your Majesty, issue the decree and put it in writing so that it cannot be altered—in accordance with the law of the Medes and Persians, which cannot be repealed.” 9 So King Darius put the decree in writing.

10 Now when Daniel learned that the decree had been published, he went home to his upstairs room where the windows opened toward Jerusalem. Three times a day he got down on his knees and prayed, giving thanks to his God, just as he had done before. 11 Then these men went as a group and found Daniel praying and asking God for help. 12 So they went to the king and spoke to him about his royal decree: “Did you not publish a decree that during the next thirty days anyone who prays to any god or human being except to you, Your Majesty, would be thrown into the lions’ den?”

The king answered, “The decree stands—in accordance with the law of the Medes and Persians, which cannot be repealed.”

13 Then they said to the king, “Daniel, who is one of the exiles from Judah, pays no attention to you, Your Majesty, or to the decree you put in writing. He still prays three times a day.” 14 When the king heard this, he was greatly distressed; he was determined to rescue Daniel and made every effort until sundown to save him.

15 Then the men went as a group to King Darius and said to him, “Remember, Your Majesty, that according to the law of the Medes and Persians no decree or edict that the king issues can be changed.”

16 So the king gave the order, and they brought Daniel and threw him into the lions’ den. The king said to Daniel, “May your God, whom you serve continually, rescue you!”

17 A stone was brought and placed over the mouth of the den, and the king sealed it with his own signet ring and with the rings of his nobles, so that Daniel’s situation might not be changed. 18 Then the king returned to his palace and spent the night without eating and without any entertainment being brought to him. And he could not sleep.

19 At the first light of dawn, the king got up and hurried to the lions’ den. 20 When he came near the den, he called to Daniel in an anguished voice, “Daniel, servant of the living God, has your God, whom you serve continually, been able to rescue you from the lions?”

21 Daniel answered, “May the king live forever! 22 My God sent his angel, and he shut the mouths of the lions. They have not hurt me, because I was found innocent in his sight. Nor have I ever done any wrong before you, Your Majesty.”

23 The king was overjoyed and gave orders to lift Daniel out of the den. And when Daniel was lifted from the den, no wound was found on him, because he had trusted in his God.

24 At the king’s command, the men who had falsely accused Daniel were brought in and thrown into the lions’ den, along with their wives and children. And before they reached the floor of the den, the lions overpowered them and crushed all their bones.

25 Then King Darius wrote to all the nations and peoples of every language in all the earth:

“May you prosper greatly!

26 “I issue a decree that in every part of my kingdom people must fear and reverence the God of Daniel.

“For he is the living God
    and he endures forever;
his kingdom will not be destroyed,
    his dominion will never end.
27 He rescues and he saves;
    he performs signs and wonders
    in the heavens and on the earth.
He has rescued Daniel
    from the power of the lions.”

28 So Daniel prospered during the reign of Darius and the reign of Cyrus[b] the Persian.

Article originally posted here by Eventide

by Jason Myhre

Article originally posted here by Inspire

by Dr. Erik Davidson, CFA

The weapons we fight with are not the weapons of the world. On the contrary, they have divine power to demolish strongholds.

2 Corinthians 10:4

Note – As we comment on the current economic and market environment, it is always with the full understanding that the Coronavirus Crisis is first and foremost a humanitarian one. Therefore, our hearts groan as we “weep with those who weep” (Romans 12:15), and we cling to the promise that “He heals the broken-hearted and binds up their wounds.” (Psalm 147:3)

With the abrupt end of the longest bull market in the history of the U.S. stock market, investors are now understandably worried about the probable depth and length of the current bear market in which we find ourselves. So, let’s take a look at this bear market in the context of the history of prior bear markets.

So far, the current stock market’s worst drawdown from its February 19 peak (S&P 500 close of 3386) was its March 23 nadir (S&P 500 close of 2237) for a loss of 33.9%. With the recent rebound, as of March 31 (S&P 500 close of 2585), the stock market is now down “only” 23.7%. While it is certainly possible that further downside awaits, our view is that the lows we have experienced are closer to the bottom than to the top. Here is our rationale:

Referring to history, the U.S. stock market has seen deeper bear markets than what we have seen so far with this downturn. The 2007 – 2009 Financial Crisis saw a decline of 56.8% in the S&P 500 and the 2000 – 2002 Technology Bust, exacerbated by the September 11 terrorist attack, recorded a 49.2% peak-to-trough loss. The 1973 – 1974 Oil Embargo Crash was 48.2% and the Great Crash of 1930 – 1932 saw a devastating loss of 82.8%. However, each of these more substantive stock market drops listed was preceded by periods of exuberant valuation bubbles in stocks themselves or in housing as seen in the Financial Crisis.

Though we had expressed concerns about the record length of the most recent bull market and economic expansions with valuations starting to show signs of excess (see Trouble), we were not of the view that equities had reached bubble territory. In our opinion, the cause for this current bear market was the exogenous event of the Coronavirus outbreak. Therefore, assuming that this shock will be addressed, it is probable that this stock slide will not be as dramatic as those listed above. As an example of the impact of an exogenous event, the heightened Cold War tensions preceding the Cuban Missile Crisis in 1961 – 1962 led to a drop in the S&P 500 of 28.0%. Moreover, even with the tragic loss of life and economic destruction of World War II, that exogenous event caused the S&P 500 to drop “only” by 42.3% during the 1939 – 1942 bear market.

The current crisis environment is increasingly being described as one of “wartime.” Given the potential fatalities, the disruptive impact to “normal” life, and the economic damage, this “battle” metaphor seems warranted. The Bible contains many stories of wars and battles and oftentimes employs combat imagery, including Ephesians 6’s reference to “putting on the full armor of God.”

Christians know from 2 Corinthians 10:4 that the weapons with which we are called to fight with are “not the weapons of the world.” Specifically, we are called to employ spiritual weapons which “have divine power to demolish strongholds.” During this time of anguish and loss, believers can be praying and fasting for the demolition of the Coronavirus stronghold.

Beyond those spiritual weapons, there are many other God-ordained “weapons” that are being brought to bear against the “invisible enemy” that humanity faces together. By themselves, none of these weapons are sufficient, but in combination they can prevail to the benefit of our collective physical and economic health.

Healthcare Weapons – Many of our family, friends, and neighbors are serving on the front lines of this war as doctors, nurses, etc. by delivering skilled and compassionate medical care to the sick and dying. These members of our communities are putting themselves in harm’s way for our safety. They should forever be remembered as heroes for their selfless service during this time.

Medical Science Weapons – Never underestimate the power of human ingenuity when brought to bear against what might appear to be insurmountable challenges. At this very moment, scientists, doctors, researchers, pharmaceutical firms, biotech companies, hospitals, medical device manufacturers, medical testing companies, and many others around the world are working around the clock to bring quickly to market the medical solutions needed to end this pandemic crisis.

Behavioral Weapons – By now, we are all too familiar with the concepts of “social distancing,” “shelter in place,” etc. While inconvenient and confining, these constraints are proving to be effective in curbing the transmission of the virus as well as “flattening the curve” to accommodate medical capacity constraints.

Monetary Weapons – The Federal Reserve Bank of the United States has taken its own wartime efforts to mitigate the inevitable economic damage of the Coronavirus. By pushing the overnight Federal Funds target rate to below ¼% and reinstituting Quantitative Easing with $4 Trillion of bond purchases, the Fed has loosened its monetary policy spigots wide open.

Fiscal Weapons – With last week’s signing of the Phase 3 $2.1 Trillion stimulus package, there is little doubt that the nation’s checkbook is open in the fight to save the economy. While a recession for the country has become almost a foregone conclusion, the battle lines are now being drawn with payments to households, loans to small businesses, etc., in an effort to keep the economy from entering a depression. Also, many regulatory red-tape constraints are rapidly being cut to free up companies to conduct business as needed to meet the marketplace needs.

This list of weapons, when used in combination, can give us confidence that we will prevail against the Coronavirus enemy. Lives will be saved, the economy will recover, and our collective “pursuit of happiness” continued. We will get through this!

So, while there is likely more turbulence yet to come in this epic battle against the unseen enemy, investors can take comfort at the multitude and strength of the “weapons” being brought to bear against it. As stewards of God’s financial capital, we should recognize our responsibility–in fact our “calling” (Luke 19 Parable of the Talents)–not to cower in fear but rather to look for opportunities to deploy capital prudently in this time of need. Getting practical, in Bear Market “To Do” List – P.E.A.C.E., we suggested Dollar Cost Averaging (DCA) as a strategy to ease cash into this turbulent stock market. Finally, as followers of Christ, let us pray together earnestly for that “divine power to demolish strongholds.”

Article originally posted here by Beacon Wealth

by Beacon Wealth

In an effort to get me out of the house growing up, my dad would often proclaim “Son, an idle mind is the devil’s playground.” This axiom is proving true during the Covid-19 pandemic in a big way. While pornography may not be making national headlines or inflicting physical death, its rise in prevalence during the worldwide shutdown is proving highly destructive to people all around the world.

Providers and distributors of pornography have attempted to seize upon this opportunity to pump up profits and increase viewership during our period of self-isolation and quarantine. As people are alone, bored, and inert, the odds of turning to pornography to fill the void are becoming increasingly high. Pornography companies have made it easier and even more accessible to cultivate this addiction. For example, Pornhub, the largest Internet porn provider, announced it was offering free access to its site along with member privileges to people in Italy, one of the nations most affected by the virus.

As a result of this action, which has also now been extended to both France and Spain, pornography viewership in those countries increased by an average of 50 percent. On March 17, worldwide pornography internet traffic was up 26.4 percent.[1] 

Pornhub declared that these statistics reflected an overall rise in “happiness and distraction” in a period of tragedy and sadness. Is it true that pornography provides joy and a harmless escape from the broken world? Not exactly.

Recovering addicts sing a different tune, with some relapsing after just three weeks of quarantine and others barely avoiding the urge to view pornography again. Why would people fight so hard to avoid going back? It is because pornography is an addiction that is devastatingly harmful to the mental health and emotional and spiritual well-being of millions, not to mention marriages and families.

Not only have studies proven its detrimental effect on mental health and high addiction rate (comparable to that of crack cocaine), pornography sites have also habitually emboldened perpetrators of human trafficking, sexual abuse, and rape. For example, images of a 15-year-old who went missing in Florida for over a year were spotted on Pornhub and other similar websites.[2] While Pornhub touts a proven verification process for ensuring trafficked girls are not appearing in videos on the site, the case in Florida shows this process to be lacking.

This is just one of many examples of pornography providers being complicit in crimes of human trafficking and the denigrating of human dignity. Pornhub may claim they are providing “no strings attached” happiness, but often that happiness is both dangerous to the user’s mental health and comes at the expense and objectification of another human being created in the image of God.

Many major publicly traded companies in the United States facilitate sexual exploitation. The “Dirty Dozen” is a list of twelve companies,  including Amazon, Google, and Netflix, that actively support and profit from pornography addiction and human trafficking.[3]

Friend of Faith Driven Investor, Beacon Wealth Consultants, have a zero-tolerance policy prohibiting investing in companies that profit from pornography. Their LightPoint portfolios seek to invest only in corporations that are making a positive difference in the world. These are what they affectionately call “Shining Light Companies”. These exemplary companies are actively upholding human dignity and promoting human flourishing.

This is not a practice that needs to be singular to Beacon Wealth. If Faith Driven Investors want to act on the message we preach, ensuring that we stay clear of companies that support morally corrupt behavior is a must.

[1] https://www.nationalreview.com/2020/03/coronavirus-lockdowns-porn-companies-see-opportunity-in-isolation/

[2] https://www.ncregister.com/daily-news/demonic-deal-pornography-industry-targets-the-isolated-in-coronavirus-pande

[3] https://endsexualexploitation.org/dirtydozen-2020/

by Chris Evans

I recently got an email from Harris, a friend in whose company I’d invested.  After several years of striving mightily to make the venture succeed, he was sharing the news that it had failed.  I was naturally disappointed the investment didn’t pan out, but what really hit me was how hard Harris was taking it.  He was a mature and committed Christian who tried to run the business on Godly principles, but it failed.  I could sense him questioning if he somehow had disappointed God.  With 2/3 of Angel investments ending in a loss, there are probably many faith-driven entrepreneurs who have had to ask this question.  It doesn’t help that in one of Jesus’ most famous parables, the Parable of the Three Stewards, the entrepreneurs in the story are both successful.  I wish sometimes he’d included a fourth steward in this story.   

The parable starts like this: 

“… For it is just like a man about to go on a journey. He called his own servants and entrusted his possessions to them. To one he gave five talents, to another two talents, and to another one talent, depending on each one’s ability. Then he went on a journey. 

It’s clear at this point that the Master only invested in his own servants — people he knew well.  Often times investors start by taking investments from friends and family.  While it hurts to disappoint any investor, often those who trusted you first and know you longest hurt the most.  Also note that the master invested at different levels with different servants. The first received five times what the third did.   Jesus continues…

“Immediately the man who had received five talents went, put them to work, and earned five more. In the same way, the man with two earned two more. But the man who had received one talent went off, dug a hole in the ground, and hid his master’s money. “

Here it’s clear that Jesus respects hard work and initiative.  The first two stewards got to work “immediately”, wanting to show how much they valued the master’s trust in them and eager to show that trust was warranted. 

“After a long time, the master of those servants came and settled accounts with them. The man who had received five talents approached presented five more talents, and said, ‘Master, you gave me five talents. See, I’ve earned five more talents.’ “His master said to him, ‘Well done, good and faithful servant! You were faithful over a few things; I will put you in charge of many things. Share your master’s joy.’ “The man with two talents also approached. He said, ‘Master, you gave me two talents. See, I’ve earned two more talents.’ “His master said to him, ‘Well done, good and faithful servant! You were faithful over a few things; I will put you in charge of many things. Share your master’s joy.’ 

So far, so good.  Note that the master seemed just as happy with each servant – both will be put in charge of “many things” going forward.  The last servant, however, had a different approach and got a very different response:

“The man who had received one talent also approached and said, ‘Master, I know you. You’re a harsh man, reaping where you haven’t sown and gathering where you haven’t scattered seed. So I was afraid and went off and hid your talent in the ground. See, you have what is yours.’ “His master replied to him, ‘You evil, lazy servant! If you knew that I reap where I haven’t sown and gather where I haven’t scattered, then you should have deposited my money with the bankers, and I would have received my money back with interest when I returned. “ ‘So take the talent from him and give it to the one who has ten talents. Matthew 25:14–29 (CSB)

The last servant didn’t lose his masters money, but did almost nothing with it.  He literally buried it in the ground!  The master calls him evil and lazy.  He’s not so much angry at the return as the lack of effort, imagination, and faith on the servant’s part. 

As an entrepreneur, I love the story of an investor giving servants funds and later praising them for their return on investment, but what about those who try their best to make a return but fail?  Imagine this fourth servant in Jesus Parable that the master gave three talents to:

“… Immediately the man with three talents investing in goods that he shipped to far-away lands growing the investment to thirty talents.”

While the first two servants generated respectable Return on Investment (200%); given a “long-time”  you could probably generate a much higher ROI if you were willing to invest in a riskier enterprise.  However, with greater risk comes a greater chance of failure and in my modified parable the fourth servant learns this the hard way… 

The man was excited to share his results with his master, but then he got word that a storm had sunk all of his ships and his entire investment had been lost.  Right after that, he was told that the master had returned to settle accounts with his servants. 

After the master’s scene with the first three servants, imaging this interaction:

… Then the man with three talents also approached. He said, Master you gave me three talents.  I grew it to thirty talents through shrewd trading but see, all was lost when a storm wrecked the ships carrying the treasure I earned and I have nothing to return to you.”

How do you think the master would respond to this servant? Would he praise him like he did the first two servants, or rebuke him as he did the last?  Failure is a part of entrepreneurship and investing.  We can try our best to avoid failure, but there are always factors and events beyond our control that can wreck our venture (or, for that matter, make them wildly successful).  

I believe Jesus would have had the master say “Well done, good and faithful servant! You were faithful over a few things; I will put you in charge of many things. Share your master’s joy.“.   That’s because Jesus’ parable wasn’t really about return on investment, it was about faith.  The difference between the servants that pleased their master and the one that earned the rebuke was that the first two acted on faith, risking what was given to them so that they could put it to work and show their master the fruit of their efforts. The third servant was so afraid of making a mistake and displeasing his master that he had nothing to show for his opportunity – based on Jesus comment about the bankers, even if he’d invested his talent in one of the other servants he would have been praised.  

Faith is so important that when Jesus’ disciples asked him (Jn 6:28-29) “What must we do to be doing the works of God”, Jesus answered, “This is the work of God, that you believe in him whom he has sent”.  Jesus isn’t really concerned with the quality or quantity of the treasure you are able to bring him – after all he created the treasure in the first place.  What he really wants to know is “did you think, speak, and act like you completely believe that I am who I say I am?”.  The third servant was paralyzed by a fear of failure but what he didn’t see was that the only way he could fail was by being paralyzed by fear – God wanted to see him show faith and take risks. 

This is also reflected in Hebrews (11:6) “Without faith it is impossible to please God, because anyone who comes to Him must believe that He exists and that He rewards those who earnestly seek him.” The writer then goes on in the rest of chapter 11 to list out those who demonstrate the kind of faith God is looking for.   

So whether you are an entrepreneur launching a company you hope will honor God, an investor hoping God will be pleased with how you use the wealth you’ve been given, ask yourself if you are reflecting your belief in Jesus in your efforts and you can look forward to hearing “Well done, good and faithful servant” regardless of how well your ventures or investments do.  As I wrestle with this question, I try to look past the financial investments I make and also look at how I invest my time in people, being willing to take risks relationally as well as financially and expecting to settle accounts someday with the master who gave me all my days to invest.  

If you are a faith-driven investor, there will be times when you get news as I did from Harris.  While it may be disappointing, if you believe they were faithful and did all they could to make the investment succeed, give encouragement to such faithful entrepreneurs.  This is what I did for Harris. Take time to thank them for all they did to try to make the venture succeed, while reminding them (and yourself) that it is natural and common for new ventures to fail. There is no shame in that sort of failed venture. If you are a faith-driven entrepreneur whose enterprise has come to an end, reassure yourself that, as Phillip Yancy wrote in What’s So Amazing About Grace, there is nothing you can do to make God love you more and nothing you can do to make Him love you less.  If you were not afraid to trust Him in your venture, then you’ve profited from the experience and will be that much more prepared should you choose to start another venture later.  After all,  the master said “You have been faithful over a few things, I will put you in charge of many things.”