Invest In Several Categories

[Copland Financial Ministries ]

Because no human can consistently predict the direction of any market [James 4:11-13], it is important to diversify your assets into different categories of investments that will likely react differently to any given market condition.
Ecclesiastes 11:1, 2 says, “Cast your bread upon the waters, for after many days you will find it again. Give portions to seven, yes to eight, for you do not know what disaster may come upon the land.”
“Cast your bread upon the waters” was a metaphorical expression used in the grain trade to illustrate the potential successful prospects of a business investment.
In other words it is biblical to take some risk, however God recommends diversifying your investments into seven or eight different categories because you do not know what the future holds.
As a practical matter diversification will reduce the risk and volatility of your portfolio.
In summary, God recommends diversification of the investments that God has entrusted to you.

It’s not about predicting, which no one can consistently do. It’s about stewarding by buying huge, undervalued assets in a very measurable, prudent way.

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Diversification won’t help when diversifying into most assets which are overvalued at this point. Buying a bunch of expensive things doesn’t prevent them from going down.

But I am a believer in diversifying into a number of undervalued assets.