Stock Casting 101: The Stock Market and Faith

Finance and Faith, Religion and Money. Simple words but put in the same sentence these words can cause even the most devote to cringe. Instantly images of televangelists asking little old ladies to put $10 in an envelopes come to mind. So when I sat to write a blog on the stock market and faith, I thought it best to start with an explanation.

STOCK CASTING 1O1: The Stock Market and Faith

The idea of Stock Casting came to me one day when I was reading John 21:6. The passage describes fishermen, friends of Jesus, who had been fishing all day with no results. Their failure that day was not due to their laziness or inaptitude. If you recall these fishermen were not weekend warriors trying to catch a fish on a lazy Saturday, they fished daily for their livelihood.

Jesus, a carpenter by trade, who knew little if anything about fishing tells them to cast their net unto the other side of the boat. It doesn't take a scientist to realize that Jesus advice makes no practical sense. It was the same water under the port or the starboard side of the boat. Casting their nets onto the other side didn't logically seem as if it would produce a different result. However these fishermen proved obedient and because of their obedience they caught more fish than they could bring in their boat.

What does this simple story have to do with the Stock Market and the daily challenge many of us working on Wall Street face as we look among thousands of investment opportunities for the ones that will yield the greatest return? As I read this passage, and although I was an analyst at a hedge fund on Wall Street, I identified with these fishermen. I was out there using all the tools I had and the knowledge I had acquired. But I was relying completely on my own mental acumen to pick stocks. I had a Ph.D from Yale working at one of the hedge funds with a reputation for outstanding results; yet God was not a part of the equation. It dawned on me that if God was willing to help these fishermen cast their nets and catch fish, God would want to help me as well in my daily work of selecting and finding the right stocks.

And what did he want in return? My trust in Him.

Trusting anything or anyone in the Stock Market is a challenge let alone a God that you can't see. Even those with an active prayer life have difficulty knowing the difference between His voice and the voice in their head. Many of the concepts I plan to talk about is how to hear God's voice in our decision making but in particular in stock picks as analysts, traders or portfolio managers. And more broadly how to actively include God in your work life.

If you are asking yourself why would God want to guide me with something like stock picks? My response to you is why would God want to help those fishermen with their fishing? The answer is simple. Because he wants us to relinquish control of our world and trust in Him. When you arrive at a place where you can't do it on your own, that is when you need faith and God can act and show to you that He is real and very interested in your welfare.

I recently started to practice "stock casting" and I believe that I am on to something. In giving up control of the reigns to God I was able to let Him direct which stocks I should buy or sell and the timing as well. This is not a get rich quick scheme. This is not like asking God what are the numbers in the lottery going to be. It is asking God very simply to be a part of my work -- show me where to focus my time and to wait for answers. It is about showing God that I can't do this on my own and I need His help.

The first time I applied "stock casting" was on the first night of my first day on a new job as a senior health care analyst at a small hedge fund. I knew I had to work hard and prove myself and I remember coming home to do some more work and really not knowing where to start. Rather than picking up the first analyst report or 10K I had printed up I decided to pray first. It was actually not a long prayer but a short one where I basically told God I didn't know what I was doing, I didn't know where to start, please help. After praying, I felt instead of reading what I had brought home to read, I decided to go to the CMS website, a site that is dedicated to Medicare and Medicaid. The first thing I noticed at the top of the page was a press release that had just been issued moments prior. As I read the press release, I instantly knew this was big news, big enough news that I decided to write up a quick email summarizing my findings and sending it immediately to my portfolio managers advising them of my recommendations. The next day, all the Medicare stocks were the big winners of the day.

By asking God for his help before staring my work that night, He directed me toward the place where my effort would be best spent. This is the foundation of "Stock Casting" asking God what to do, where to cast your net. I am just getting started on this journey myself and look forward to sharing my views, insights and results and hearing your feedback.