One thing that seems to almost always catch people by surprise is when things revert to the mean. It seems like when things are falling apart the common mindset starts to assume that everything will keep falling apart, and when things are going great people assume that it will continue.

Like Sir Isaac Newton said, anything that comes up must come down. However, even with all his knowledge he fell victim to the South Sea Company Ponzi scheme. After cashing out the first time and making a substantial profit, he decided to come back for more and lost both his earlier profit and original investment because the second time around he wasn’t so lucky, and the company imploded before he was able to get out.

Now fast forward 300 years later, and it seems like the same behavior is still at play. Greed and the lust for more money and higher profits still rule many people’s decisions. However, just like 300 years ago, promises of “above-average” returns still draw people to invest, and just like always, above-average returns usually lead to above-average losses when the party stops and things revert to the mean.

1 Timothy 9-10: But those who want to get rich fall into temptation and a trap, and many foolish and harmful desires which plunge people into ruin and destruction. For the love of money is a root of all sorts of evil, and some by longing for it have wandered away from the faith and pierced themselves with many griefs.

Over the last few weeks, we have seen a few regional banks collapse. The banks that collapsed were the banks that had the most exposure to the cryptocurrency and start-up company industries. Both of these industries are usually unprofitable and rely on debt for their operations. When money is cheap and in abundance, these industries provide substantial returns under the promise of “eventually becoming profitable”. However, when the party stops and funds tighten up or reality kicks in (whichever comes first) these industries start drawing down their funds. When there is nothing left, they close their doors, leaving the banks that were working with them exposed. This process has repeated itself for more than 300 years, and almost always in the same fashion just with different names.

So, as we are in the economic stage where funds tighten up, our recommendation is to put your money in a place where there is a tested and consistent return that lines up with your values.

Church Investors Fund is happy to celebrate 50 years of ministry this year. In those 50 years Church Investors Fund has seen high rates, low rates, economic growth, and recessions. Through all of that Church Investors Fund has never missed a payment, and we are pleased to say that even with the change in the economy our financial position remains strong and positioned to keep serving its mission.

When you invest with Church Investors Fund you can rest assured that each dollar is prudently put to work to help ministries obtain facilities, and that any excess cash is being carefully monitored and managed.

Igor Mokhov
President of Church Investors Fund, Inc.