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by Jerry Bowyer

I wrote several months ago about New Testament scholar (read here and here), Ben Witherington III, and his book, A Week in the Life of Corinth. What I find most fascinating about the book is the degree to which Christians were integrated into the economic life of the city.

For instance, there is Erastus, the city manager of Corinth (in Greek, oikonomos, or ‘economist’; in Latin, aedile). St. Paul refers to him in Romans 16:23 as well as in 2 Timothy 4:20. According to Cicero (On the Law, Book iii) this office had wide authority including the role of treasurer, and public works and public festivals. Cicero explicitly mentions upkeep of temples as well as other public works. Erastus is mentioned in the Pauline epistles without hint of reproach or disapproval for his role as chief economic official in a city in which paganism was thoroughly interlaced with economic life.

Interestingly, one of the early controversies in the Corinthian church was over the matter of eating meat sacrificed to idols. Pagan temples frequently involved animal sacrifice, and the by-produce of such sacrifice is (if the animal is not completely immolated) meat. Such meat could be consumed as part of the ritual, or could be sold later for consumption in restaurants or in homes. Some of the Christian community in Corinth considered such meat to be off limits for consumption. Others were convinced that consuming the meat was not forbidden. Paul agrees with the latter holding that consumption is permitted, but urges those who correctly see themselves at liberty to eat, not do so in a way that hurts the faith of their ‘weaker brothers’. Paul puts liberty above any principle of purity via separation, but puts love above liberty.  One wonders how Christians might respond to this controversy if these passages were not in the Bible. Imagine how Christians who ate meat which was butchered during pagan rituals would be treated by their more conservative separationist brethren. The direction of Paul’s ruling in the matter is towards wide latitude when it comes to Christians dealing with a wide array of types of people and business enterprises. But the fact that the enterprise in which those animals were sacrificed to pagan gods was overseen financially and to some degree operationally by a manager who drew a salary from them, who was also a Christian who was on good terms with the Apostle Paul, gives some indication how much liberty of conscience was permitted in economic dealings.

I asked Dr. Witherington about this issue and he pointed out that Christians in Corinth were not isolated financially and economically from their community. Even Judaism (which, for good reason, was more separationist in its tendencies) was integrated into that community. They “did not live as the Amish do, Qumran was an exception. Christianity was maybe the 1st genuinely evangelistic religion in world history. They had to have an open face to the world.”

When I asked him about the meat sacrificed to idols controversy and suggested that this gave wide latitude for economic dealing he said, “That’s right. Where the line was drawn was in regard to worship. It was not okay to go the pagan meals in the pagan temples.” Paul does mention one other restriction which is if someone puts food in front of you, and says “This was sacrificed to idols.” You are not to eat so that you “do not cause them to stumble”. Who is the they/them who might stumble? According to Witherington, this refers to the separationist who is offered the food. They would not want to shame their host by turning down food offered in hospitality, but would also be conscience stricken at the idea of eating meat sacrificed to idols. This creates a social no-win situation where they have to humiliate their hosts or violate their conscience. According to Witherington, for the more mature Christian to use his or her liberty to eat at such a time puts the less mature Christian in an awkward situation, in which they might give in to social pressure and do something they believe is wrong. Interestingly, says Witherington, “The weak are those who have too many scruples, not too few.”

I asked Witherington if this principle applied to ‘sin screen’ investing in which money managers urge people to use their services in order to avoid participating in evil by investing in companies whose businesses might include distribution of pornography or tobacco. In other words, are such investments analogous to meat sacrificed to idols? Witherington said that they were. That these were matters of individual choice, but that if someone believed it was wrong to invest in these things, than that belief means that it is genuinely wrong for them to do it: “Paul says whatever YOU do that is not in faith is wrong for you.” But that there was no universal moral obligation to refrain from such investing: “It’s going to differ for people.” He pointed out that as a United Methodist minister, he’s called up to make selections as to what he might object to including in his pension plan. Some choose certain restrictions — say, no investing in companies that deal with nuclear waste, but, “Some just throw up their hands and say: We live in a fallen world, virtually everything I invest in is going to be tainted in some ways.”

I already thought of Christianity as a religion which allows a rather wide zone of freedom, but I think Witherington’s research helped me to see how very wide that zone was. It is a strange paradox that a religion which allows such high degrees of freedom has such a strong reputation for lack of freedom.

You can listen to the full interview here.

This article was originally published here.

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by Rachel McDonough

“We are therefore Christ’s ambassadors, as though God were making His appeal through us.” (2 Corinthians 5:20a)

In the same way that the political ambassadors of our day serve as representatives of their home countries while living abroad, we, as followers of Christ, live on the earth as representatives of heaven.

We are here to represent the culture and the values of the kingdom of heaven, and to be a conduit through which God makes His appeal. But can we do that in our investments?

As we mature in the Lord, all areas of our lives increasingly reflect a culture that contrasts sharply with the world around us. Rather than simply seeking returns or trying to gain wealth, our investment choices become a reflection of our understanding of God’s ways and nature.

Motivated by our desire to accurately represent Him and honor Him, a greater level of care is needed to ensure we understand how portfolio profits are derived. Given the popularity in less transparent, fund-style investments, many investors simply don’t know which companies they own. Thus many are unwittingly profiting from industries like tobacco, gambling, or abortion that they would find objectionable and directly at odds with God’s plan for humanity.

As an investor of God’s money, we can apply an “Ambassador Filter” over every investment opportunity by asking myself these questions:

• Am I representing Jesus well as His ambassador if I invest His money in this company or fund?

• Dose this company honor, serve, and bless people, as members (or potential members) of God’s expansive family?

• Do I have enough information to know if this investment would be pleasing to God?

This article was originally published here by Inspire Investing.

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by Dr. Erik Davidson, CFA

Peace I leave with you; my peace I give to you. Not as the world gives do I give to you. Let not your hearts be troubled, neither let them be afraid.

John 14:27

As a follow-up to my piece, Troubles, a few weeks ago, I offer you some of my further thoughts on navigating the current market environment as a biblically responsible investor.

From an economic perspective, the Coronavirus pandemic is both a demand-shock and a supply-shock. So, as opposed to a significant hurricane or blizzard or even the 9/11 terrorist attack, this exogenous event may not simply push back economic activity, but rather may actually destroy it. Therefore, it is highly likely we have already entered a recession. Monetary and fiscal stimulus are critical components for an economic recovery. They must be done. However, in and of themselves, these economic policy levers are not enough. The new health concerns that have emerged must be addressed over the coming months, into the next flu season, and for years thereafter. Further, consumer and business confidence must be restored. This will simply take time and there are no short-cuts around it. Lastly, while we all long for a return to “normal,” it is likely that when we do emerge from this crisis (and we will!), life and the economy will be different than it was before. Specifically, our day-to-day lives and the economic environment will be changed in terms of travel, social interaction, entertainment, health care, the social safety net, politics, globalization, etc.

As we face these challenges, we must remember that it is buried very deep within our human nature to want to take action in the face of adversity. Especially in times like these, our natural behavioral instincts (incl. survival and herding) activate into high gear and we rally under the banner of “Don’t just sit there—do something!” Against that instinct, however, the Bible gives us the challenging guidance to “Be still, and know that I am God” (Psalm 46:10). It is almost as if our command as believers is counterintuitively to “Don’t just do something—sit there!”

In our hearts, we know that this is wise instruction, but it is a tough pill to swallow as the stock market plunges. Fortunately, most investment experts wisely support this concept of prudence by advocating a mindset of calmness, resolution, and perspective. However, many times their advice is offered as a “To Don’t List,” e.g., “Don’t panic!” “Don’t sell!” “Don’t abandon your plan!” “Don’t capitulate!” or “Don’t liquidate!” All these are wise guidelines, but they go against our very strong human reflex to actually do something!

Therefore, in contrast to a “To Don’t List,” I share with you a list of proactive actions that can be taken by investors right now. This is based on my 35 years of investment experience, but equally on my 45 years of being a follower of Jesus Christ. This Bear Market “To Do List” is called “P.E.A.C.E.”

P.E.A.C.E.

Pray:

Before anything else, let’s be sure to pray. Let’s be on our knees crying out to God for healing, comfort, and provision for those who have been affected by the Coronavirus. Let’s pray and fast in support of the global forces of human ingenuity, science, and wisdom being brought to bear against this modern-day pestilence. Lastly, let’s pray that through this adversity, many will come into a personal relationship with God. Praying is something we can “do.”

Engage:

Engagement is something that we can definitely do in this environment. Even if they are not afflicted by the Coronavirus, so many around us have been impacted adversely. Within the proper protocols of “social distancing,” let’s engage with our family, friends, and community who need our assistance—neighbors who need to be checked on, seniors who need some shopping done, or maybe some health-care or emergency-services workers who need help with their out-of-school children. Let’s look for ways to support local businesses and their employees who are suffering dramatic downturns in their revenues. How can we support those in our communities who are most economically vulnerable? Engage is something we all can “do.”

Assistance:

Unfortunately, economic downturns often lead to a significant decline in charitable giving—just when the needs are at their greatest. Therefore, something that we can “do” is to maintain, if not even increase, our donations to our church, community organizations, medical-research charities, etc. They need it now more than ever. Assistance is something we all can “do.”

Cash:

In all market environments, bull and bear, one essential thing that investors must “do” is ensure that they hold an adequate amount of cash. This cushion mitigates the risk of having to “sell into a hole” during a market downturn when money is needed to cover expenses. Most financial planning experts recommend that anywhere from 6 to 24 months of living expenses be held in safe, low-yielding cash, savings, or money market accounts. If an investor does not currently have that amount of money set aside, then now is the time to do it, even though the market has sold off so dramatically. However, even in such a volatile market environment, investors should be cautious about holding too much cash, especially with current interest rates so low. Remember that at 0.25% per year, an investor is on course to double her money in 288 years! Having the right amount of cash—not too little, but not too much—that is another thing that investors can “do” in this market environment.

Ease into the stock market:

In these trying times, our “fight or flight” instincts are particularly pronounced. So while many investors are grappling with their “flight” impulses, others are engaging with their desire to “fight,” i.e., buy at these significantly depressed levels. Sometimes this is likened to trying to catch a falling knife. From our perspective, the stock market’s downside risk is still substantial. However, at -30% from the all-time high and with valuations much more attractive now, we believe that we are likely closer to the bottom than the top. Further, being a provider of investment capital in such dire times also meets a higher, noble purpose. Therefore, what investors can “do” if they have cash ready to be deployed is start easing into the market. A “dollar cost averaging” (DCA) strategy is a good method to minimize the emotional toils of a turbulent market by committing to invest a set dollar amount on a predetermined schedule, come what may. For those investors who are already fully invested, there is still something that they can “do,” namely rebalance. In rebalancing, investors make adjustments to their portfolio at the margin to bring it back to its target percentage allocations. In other words, trimming down (not selling out completely) some of those investments in asset categories that have done relatively well (e.g., bonds) and redeploying the proceeds into asset categories that have done relatively poorly (e.g., stocks). These are some prudent things that investors can “do” to ease into the stock market in the face of the sell-off.

In conclusion, I urge you to keep the faith as you grapple with your “To Don’t” and “To Do” lists under these stressful conditions. It affects all of us! Even Paul wrote, “For what I want to do I do not do, but what I hate I do” (Romans 7:15)!

And when grip of fear tightens, just remember the promise we have received:

Come to me, all who labor and are heavy laden, and I will give you rest. Take my yoke upon you, and learn from me, for I am gentle and lowly in heart, and you will find rest for your souls.

Matthew 11:28-29

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What could Scott Drew, the Coach of Baylor Men’s Basketball have to do with investing? Well, we’re excited to announce that we’re launching a new initiative—The Faith Driven Athlete. Our passion is to show how God moves in all of our work, as entrepreneurs, investors, athletes and this is the next step in that.

We’re bringing you this special episode because, had it not been for COVID-19, this weekend would’ve been the start of the NCAA Final Four. And Baylor is one of the teams who likely would’ve been competing for a title. In our conversation, Scott Drew let us in on the challenges he faced early in his career, the faith that carried him through it all, and how he’s responding to life’s most recent curveball.

So if you enjoy this episode, be sure to subscribe to the Faith Driven Athlete podcast to hear from athletes like Kirk Cousins, Jeremy Lin, Adam LaRoche and more in the coming weeks. As always, thanks for listening…

Useful Links:

Scott Drew’s Long Journey to Success

FCA Recognizes Scott Drew with John Lotz Award

Scott Drew Remains Focused on Faith as Baylor Remains #1

This article was originally published here by TechCrunch.

by Connie Loizos

Venture capitalists have raised record-breaking funds in recent years, but that doesn’t always mean the money is there for them when they want it. In extreme downturns, the people and institutions that promise capital to venture capital firms, and then wire it when the VCs need it for their startups, have little choice but to answer the phone less. The alternative is to sell others of their positions — including in publicly traded stocks —  at a steep loss, and they’d really prefer not to do that.

“The public markets end up being the ATM for the illiquid stuff,” says Chris Douvos  of Ahoy Capital, one such limited partner who has backed such firms as First Round, Data Collective and True Ventures. When the markets are in free fall as now, the collective reaction of asset managers, he says, is: “Holy smokes, this kind of sucks.”

What happens next depends on how sustained and deep this downturn proves. But LPs seem to agree that the the industry could be in for a reckoning this time, and if so, they’ll have to get practical, fast.

Already, newer managers are seeing LP interest dissipate before their eyes. Though Douvos says he doesn’t “think we’re there yet,” he also shares the story of a fund manager who has been struggling to close a $50 million fund and on whose behalf Douvos has been “pinging a bunch of my LP friends.” The response he is getting is, “‘We’re not investing in new relationships right now. We’re not even investing the time.’”

Joanna Rupp is a managing director at the University of Chicago’s  Office of Investments, which has stakes in many smaller venture managers with whom it has strong relationships, like Pear in Palo Alto. She echoes what Douvos is seeing, explaining that, “Everyone who is currently in our pipeline and who we committed to invest in three weeks ago, I’m still investing with them.” But given the financial gut punch the economy has taken, “some [new managers] who we wanted to build relationships with, and who could be interesting to invest with, I now don’t have the capacity to add them.”

Rupp adds that “it’s going to be very difficult for newer managers without established LP bases to raise.” But perhaps more relevant to the broader startup industry is that — absent a quick economic rebound — older relationships could also start to receive the cold shoulder.

The end result would mean fewer dollars for the venture firms that have already closed their funds, and less capital for startups that might need it.

“At some point,” says Douvos, fear and uncertainty starts to “creep into your existing portfolio, and you start doing portfolio triage, and you’re like, ‘Wait, I have 24 venture managers and I’ve got to cut somewhere.” The questions begged are: “Do I make smaller commitments to each of them? Do I start saying sayonara to the bottom third?”

It’s precisely the scenario that played out exactly 20 years ago, when following the dot-com boom and bust, limited partners — from pension funds to charitable foundations to school endowments — saw their overall assets shrink, compelling venture managers to whom they’d committed capital to slow their investments.

Some venture firms were eventually forced to shut down. Others had to downsize their ambitions. Accel,  for example, not only reduced a $1.4 billion fund it had raised, but its team at the time actually cut back the fund twice, in both 2002 and 2003, releasing some of their backers from their obligations.

Certainly, many of today’s circumstances feel familiar to those who’ve awaited some kind of a correction — one more dramatic than the 2008 financial crisis, which hit Wall Street far harder than Silicon Valley.

With record amounts of venture capital raised, a market peak, and now a sudden plunge, the moment feels very much like it did in the spring of 2000 when the high-flying market, rife with young internet companies, abruptly nose-dived, wiping out thousands of startups — and hundreds of venture firms — over the following three years.

At least some lessons were learned in the aftermath of that earlier crash. For one thing, says Rupp, in these “unprecedented times, people will show their character. You get a sense of who people are and how they think about the world, and GPs need to be really mindful of that and of how supportive they are in communicating with their portfolio companies.”

Rupp also suggests that LPs, like savvy VCs, can sometimes use downturns as a way to ease out of some positions and double down on others. Even faced with possible budget cuts, says Rupp, “Some folks we wouldn’t cut back, while you hope you might get additional allocation as other LPs become more conservative.”

Elizabeth “Beezer” Clarkson, who has led Sapphire Partners investments in numerous venture firms, further posits that companies might realize now that IPO “windows aren’t opened forever.”

While a generation of startups has subscribed to the notion that should stay private as long as possible, many of these same companies could have made their employees, venture investors, and the industry’s limited partner more money had they moved faster to go public.

“Can everyone be made a millionaire from secondaries?” Clarkson says of secondary stock sales, which private companies have used to buy the patience of early investors and employees who want some liquidity. “It must be harder.”

Of course, much remains to be seen. Coronavirus vaccines are being researched around the world, and should something work sooner than later, economies around the globe could spring back more quickly. In the meantime, VCs — who’ve raised bigger funds faster than ever in recent years — might want to give their whipsawed LPs a break. They likely have other fish to fry.

“Everybody believes that, ‘Oh my gosh, all of a sudden, entrepreneurs are willing to accept term sheets at like 10% less,’ The [VCs] see this as a value,” says Douvos.

“What they don’t realize is that [right now], there’s so much more value out in the rest of the world. All things being equal, you’d rather buy a public stock that you can buy on sale and get out of when it runs up again than a private company that you have to hold for eight or nine years.”

Especially after watching the IPO window slam shut, Douvos says “being asked to lock in losses to buy illiquid assets doesn’t feel that great.”

FOR MORE INFORMATION ON COVID-19, PLEASE SEE OUR PAGE HIGHLIGHTING SOME OF THE BEST RESOURCES OUT THERE FOR FAITH DRIVEN INVESTORS & ENTREPRENEURS IN THIS SEASON.

This article was originally published here by Joel Thomas.

by Joel Thomas

“Black start” is a term used in the energy industry. It refers to a situation, for example, when an entire electrical grid goes dark in a state, region or an entire country. In such scenarios, power plants are often unable to turn back on because they need electricity to start and run. As a result, it is necessary for the operators of the electrical grid to maintain resources that are able to start when the rest of the grid goes dark, which can then bring the rest of the grid’s resources back online. This is where black start resources come into play.

COVID19 has introduced an enormous challenge to our economy and the economic security of families in America. In recent weeks, I have watched with great admiration as national health experts, American governments, industry and business leaders have with one voice pressed for aggressive action to protect the lives of Americans and the capacity and strain on the healthcare systems, hospitals, and workers through a widely popular model known as “Flattening the Curve”. 

Private-Public Partnerships Pave the Way

“Flattening the Curve” is a notion that if we collectively respond to this global coronavirus pandemic, we can reduce the strain on health care systems and providers, and as a result, save lives. Through one of the world’s finest examples of a Private-Public Partnership ever, the U.S. government has partnered with private industry to rapidly develop tests with LabCorp and Quest, and deliver them in parking lots of well known stores such as Walmart, CVS, Target, etc. “According to one government official, at this point officials believe that private-public partnerships are a more effective way to get the resources they need quickly.”

Unforeseen Casualties of the COVID19 War

Concurrently, Governors and Mayors around the country have issued government orders to shut down schools, restaurants, stadium events, and issue quarantines around the country with one loud voice and decisive action. This is incredible to watch unfold. Concurrently, we are seeing humanity respond by hoarding, social distancing, the best hygiene ever, and lots of fear. This fear is driving stock markets mad. This fear is also rooted in a reality that the unintended casualties of this war will principally be calculated by the total number of business closures and job losses…

Thousands of hospitality workers are being laid off. The Pour Taproom restaurant that I own in Greenville, South Carolina just got orders from the Mayor to close indoor service yesterday. We are trying to innovate, offering to-go “crowlers” between the hours of 4-7pm daily. But America needs to understand that restaurants and retail industry are already inherently a risky industry that employs millions of Americans, especially the vulnerable, people who depend on tips and can’t work from home. Restaurants operate on a need for cash week to week and month to month…we are going to need a plan to get cash in people’s pockets and then get out of debt.

Even the U.S. Secretary of the Treasury believes that unemployment may rise to as much as 20% due to COVID19. This moment may have ripple effects that will last an entire generation.

But it doesn’t have to…

That is why we need collective action to Flatten the Economic Curve which includes Flattening the Supply Chain Disruption Curve. There are multiple curves that need flattening, and in this time of national emergency. Its time to broaden the aperture.

We. Must. Act. Now.

Therefore, I implore the U.S. Government and all of American Industry to consider how we can lean forward and apply a maximum pressure now to Flatten the Economic Curve. As the White House National Security Strategy states, “Economic Security is National Security”. In just the past week, Congress has passed legislation to address some of the economic challenges, while the Fed has cut interest rates, and the Small Business Administration has introduced COVID19 loan assistance program, and more measures are being considered to help put cash in the pockets of Americans, while business owners are doing everything they can to keep their business alive.

These bold measures have been exemplary, yet we need to do more as a nation, recognizing that liquidity, sales, and jobs are what matter the most right now, and that legislative and policy maneuvers alone will not save our economy. We need private and public sectors and the citizens of this nation to come together as a whole community to take aggressive measures to Flatten the Economic Curve, especially for the most vulnerable such as small businesses and ‘main street”, including women-owned and minority-owned, lest our great country fall into another great depression.  Watch this video.

SPIN Global proposes a strategic national approach:

We need a plan to “Black Start” the economy that we have intentionally shut down. Some day in the coming months, lights will be turned back on, but what will still remain is up to the aggressive actions we take now.

1. Convene a National Economic Private-Public Partnership – Using the model led by Vice President Pence with private industry partners such as Quest and LabCorp, Walmart, Walgreens, CVS, Target etc…a national economic partnership should be formed immediately, and include representation of key business leaders, industries, economic experts, and the National Security Council working together to address this challenge. 

2. Understand Current and Forecasted Economic Impacts of COVID19 – The disruption to our economy caused by COVID19 is unprecedented. We need to use the most current and granular data to conduct routine pulse checks on our economic environment, and use various vital signs in our economy to inform courses of action.

3. Mobilize America to “Flatten the Economic Curve”. In the midst of national closures, cancellations and quarantines, we need to provide guidance and messaging about how every American can contribute to sustaining the livelihoods of families in America by patronizing small, medium and large businesses in a safe and responsible way. This can be partially achieved thru a variety of measures including online purchases, pickup, no-contact delivery…and by finding ways to re-open businesses as soon as possible in a safe and responsible way, especially small business and main street, which according to the Small Business Administration represent over 99% of all businesses in America and employ 45% of the country. Second only to the life-saving mission led by the healthcare industry, the life-sustaining mission must be aggressively tackled through coordinated effort to stabilize the economy and help it to recover in the months and years ahead. 

Have we got a plan to black start this economy? It’s time to take a cold hard look at this, and flatten the economic curve for the average American before it gets out of control.

Editorial note: A true black start predicates the economy stops entirely. It would be more precise to say the entire economy is in a “grey start” and we need to avoid a black start, while some local micro-economies, industries and businesses do require “black starts”.

FOR MORE INFORMATION ON COVID-19, PLEASE SEE OUR PAGE HIGHLIGHTING SOME OF THE BEST RESOURCES OUT THERE FOR FAITH DRIVEN INVESTORS & ENTREPRENEURS IN THIS SEASON.