All eyes are on COVID-19 and the stock market as I’m writing this. What’s this have to do with faith?
Faith is the evidence of things not seen. On 2/19/20 Tesla (NASDAQ: TSLA) was valued by “the market” at $169-billion. This a company that has never – never – made a yearly profit. While stock price and market value are based on future expectation, as I’m writing this at 2:30pm on 3/19/20, Tesla has a market capitalization of $79-billion. That’s $90-billion of faith that people had a month ago that is not seen now.
I have said for years that “the market” is now driven by traders rather than investors – traders whose eyes are focused on short-term results, not on the long-term their retiring clients are looking at. That’s why over 50% of market activity is based on computer algorithms. Three days ago, The Wall Street Journal published an article saying worries about COVID-19’s effect on the economy are being exacerbated by computer-based stock trading.1 Two years ago, CNN reported that when the markets are extremely volatile, computer-based trades can make up 90% of market activity.2
On the other end of the spectrum, God says His ways are not our ways (Isaiah 55:8). And He declares the end from the beginning (Is 46:10). He’s looking at the long-term, not the short-term. And, while the enemy wants to destroy our peace and confidence, God says He does not give us a spirit of fear, but a spirit of power and love and a sound mind (2 Timothy 1:7).
So, don’t look at what the media say is reality now. Walk by faith in the eternal, and not by what you see.
Are you nearsighted or farsighted?
2 https://money.cnn.com/2018/02/06/investing/wall-street-computers-program-trading/index.html
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