Don’t Be Fickle!

Read Time / 2 Minutes

Theme / Financial Planning

The book of Judges in the Old Testament is not a book we often study.  Judges follows the inspiring conquest of the promised land in Joshua and precedes the enchanting story of love lost and love found in Ruth.  However, Judges has an intrigue of its own.  What makes it interesting is the repetition of a six-fold cycle of judgement and blessing in the book.

The cycle begins with Israel’s disobedience, which God punishes by allowing enemy nations to enslave them.  Israel subsequently repents and cries out to God, and He graciously raises a judge (leader) who delivers them from bondage.  There is peace and prosperity in the land until Israel begins the cycle again through disobedience.  Notice that Israel repeatedly becomes fickle, looking for a change – a Ferris wheel ride that always ends up at the same place.

Cyclical patterns are not unique to Judges.  Nature has cycles: summer, fall, winter, and spring.   Products have cycles: product development, market introduction, growth, maturity, and decline/stability.  Even the economy has cycles: The economy fluctuates between periods of expansion and contraction.  The average period of expansion lasts 65 months while the average period of contraction lasts 11 months.

What should our investment response be to the economic cycle, as we see the value of our investments fluctuate accordingly?   Our response should not mirror that of Israel’s in the book of Judges.  Since the periods of economic expansion historically are much longer than the periods of economic contraction, let’s not become fickle investors often changing our minds.  Let’s stay focused on the big picture lest we end up where we started with our investments!

Doug Hanson, MBA

Wealth Advisor

208.697.3699

doug@christianwm.com