The Chase Podcast

Actively Managing Risk with Biblically Responsible Investments (#

Written by Chris McAlpin | Jun 16, 2022 4:00:00 AM

In this enlightening episode of The Chase hosted by Chris McAlpin, the focus is on the intricate world of trend following in financial investing. Trend following, a strategy deeply rooted in mathematical principles, is explored in-depth, shedding light on its efficacy and potential pitfalls. Chris is joined by Clint Sorenson, an expert in the field, who delves into the historical performance of trend following, comparing it with traditional investment strategies. They discuss the importance of recognizing market patterns, the role of math in predicting market movements, and the significance of managing risk.

Throughout the discussion, the duo emphasizes the importance of having an investment system. They touch upon the challenges of recency bias and the dangers of relying solely on hindsight. The conversation also delves into the comparison between gambling and investing, highlighting the importance of strategy over luck. With references to renowned figures like Ray Dalio, the episode provides valuable insights into the world of finance from a biblical perspective.

Key Takeaways:

  1. Trend following is a robust strategy that focuses on recognizing and capitalizing on market patterns.
  2. Managing risk is paramount in any investment strategy. It's not just about maximizing returns but also about minimizing potential losses.
  3. While trend following has its merits, no system is foolproof. It's essential to be adaptable and responsive to market changes.
  4. Trusting in God's design and order can provide a foundation for financial strategies, recognizing that while we can predict patterns, only God has the complete picture.

Biblical References:

  • 1 Corinthians 14: "God is not a God of disorder."
  • Ecclesiastes 3: "God made everything beautiful in its time."

For more insightful episodes on biblical finances and investment strategies, dive into The Chase playlist here. If you have questions or need assistance, don't hesitate to reach out to the Sound Financial Strategy Group.