1

$3,0$3,00000

$60,000$60,000

19001900 19301930 20020000 Inflation Adjusted U.S. Per Inflation Adjusted U.S. Per

Capita Income Capita Income Source: Source: Financial TimesFinancial Times

2 The Wall Street Journal, September 21, 2010

3

“None of us knows what is going to happen, and there is no one to tell us.”

Ecclesiastes 8:7

4

“Our experts’ predictions barely beat random guesses. Ironically, the more famous the expert, the less accurate his or her predictions tended to be…The better forecasters were like Berlin’s foxes: self-critical, eclectic thinkers who were willing

to update their beliefs when faced with contrary evidence, were doubtful of grand schemes and were rather modest about

their predictive ability. The less successful were like hedgehogs. They tended to have one big, beautiful idea that they loved to stretch. They tended to be very articulate and very persuasive as to why their ideas explained everything.

The media often loves hedgehogs.”

Prof. Philip Tetlock

Money, March 2009

After studying 82,000 predictions

5

“I bought the field of Hanamel…The Lord

Almighty has said that houses, fields, and vineyards will again

be bought in this Land.” Jeremiah 32:9,

15

6

““Bull markets are born on pessimism, grow on Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on skepticism, mature on optimism and die on

euphoria. The time of maximum pessimism is euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum the best time to buy, and the time of maximum

optimism is the best time to sell.” optimism is the best time to sell.”

Sir John M. TempletonSir John M. Templeton

7

““Over the long run, great investors win by going Over the long run, great investors win by going where others won’t. Sir John Templeton made his where others won’t. Sir John Templeton made his fortune buying stocks at the start of World War II. fortune buying stocks at the start of World War II. A half-century later, he made a killing snapping up A half-century later, he made a killing snapping up U.S. equities after the 1987 crash. Sir John said that U.S. equities after the 1987 crash. Sir John said that

one of the biggest reasons for his success was his one of the biggest reasons for his success was his willingness ‘to buy at the point of maximum willingness ‘to buy at the point of maximum

pessimism.’ Yet we buy too much when the news is pessimism.’ Yet we buy too much when the news is good and sell when the news is bad.”good and sell when the news is bad.”

MoneyMoney Magazine Magazine Note: Individual funds may differ significantly from the securities held in the S&P 500 Note: Individual funds may differ significantly from the securities held in the S&P 500

index index

The index is unmanaged and not available for direct investment; therefore its The index is unmanaged and not available for direct investment; therefore its performance will not reflect performance will not reflect

the expenses and costs associated with active management of an actual fund.the expenses and costs associated with active management of an actual fund.

8

1980

1990

2000 2010

Consumer

Sentiment

9

Source: AAII

10

A.A. FearFear

A.A. FearFear

Animal SpiritsAnimal Spirits

F. DoubtF. Doubt

E. Irrational E. Irrational ConfidenceConfidence

D. EuphoriaD. Euphoria

C. BeliefC. Belief

B. SkepticismB. Skepticism

11

““Ever since Joseph, seers have tried—with rather less Ever since Joseph, seers have tried—with rather less success—to predict economic upturns and success—to predict economic upturns and

downturns. Economic forecasts produced by downturns. Economic forecasts produced by feeding numbers into complex models are feeding numbers into complex models are

notoriously bad at predicting turning points, notoriously bad at predicting turning points, because they tend to extrapolate the recent past.”because they tend to extrapolate the recent past.”

The EconomistThe Economist

12

““Can fiscal and monetary policy acting at their Can fiscal and monetary policy acting at their optimum eliminate the business cycle? The optimum eliminate the business cycle? The

answer, in my judgment, is no, because there is answer, in my judgment, is no, because there is no tool for changing human nature. Too often no tool for changing human nature. Too often

people are prone to recurring bouts of optimism people are prone to recurring bouts of optimism and pessimism that manifest themselves from and pessimism that manifest themselves from

time to time in the build-up or cessation of time to time in the build-up or cessation of speculative excesses.”speculative excesses.”

Alan GreenspanAlan GreenspanTestimony Before CongressTestimony Before Congress

13

PrudencPrudencee

Fear Fear

GreedGreed

FearFear

The Divine Spirit for LifeThe Divine Spirit for Life

14

““If a bull gores someone to death, it is to be stoned If a bull gores someone to death, it is to be stoned but its owner is not to be punished. But if the but its owner is not to be punished. But if the bull has been in the habit of attacking people bull has been in the habit of attacking people

and its owner had been warned but did not keep and its owner had been warned but did not keep it penned up--then it is to be stoned and its it penned up--then it is to be stoned and its

owner is to be put to death also.”owner is to be put to death also.”

Exodus 21:28 Exodus 21:28

15

““For six years, plant your land and gather in what For six years, plant your land and gather in what it produces. But in the seventh year let it rest, it produces. But in the seventh year let it rest, and do not harvest anything that grows on it. and do not harvest anything that grows on it. The poor may eat what grows there, and the The poor may eat what grows there, and the

wildwild animals can have what is left.”animals can have what is left.”

Exodus 23:10Exodus 23:10

16

“If you are in a hurry to get rich, you are going to be punished.”

Proverbs 28:20

17

18

“Show me a righteous ruler and I will show you a happy people. Show me a wicked ruler and I will show you a miserable people…When the king is concerned with justice, the nation will be strong;

but when he is only concerned with money, he will ruin his country.”

Proverbs 29:2,4

19

“The king is not to have a large number of horses for his army.”

Deuteronomy 17:16

20

“Do not mistreat a foreigner; you know how it feels to be a foreigner because you were a

foreigner in Egypt.”

Exodus 23:9

21

“The United States has a GDP per head of $46,000. Mexico’s is $8,000. So it is not surprising that millions

of Mexicans have entered America illegally in search of a better life. In these circumstances, you would think, America needs an agreed policy on immigration and a

set of laws to match. But that would require some responsible behavior by politicians. Many have instead either abdicated responsibility or gone out of their way to act irresponsibly, dumping the issue in the laps of the

courts and the police.”

The Economist

July 31, 2010

22

Our New, Old World of ResponsibilityOur New, Old World of Responsibility

““There are doubtless as many ways of There are doubtless as many ways of associating Jesus Christ with the associating Jesus Christ with the

responsible life as there have been ways responsible life as there have been ways of associating him with the ideal life or of associating him with the ideal life or

the obedient or dutiful one…The the obedient or dutiful one…The Christian ethos so uniquely exemplified Christian ethos so uniquely exemplified

in Christ himself is an ethics of universal in Christ himself is an ethics of universal responsibility.”responsibility.”

H. Richard NiebuhrH. Richard Niebuhr

The Responsible The Responsible Self Self

23

Financial TimesFinancial Times, January , January

26, 200926, 2009

24

“Jesus did not speak directly against wealth and money lending, but he did emphasize the dangers of riches and the rich man’s responsibility for the poor…The question for the future is whether an economy such as America’s

can retain the value of individual freedom while recapturing the sense of social responsibility. Christianity

has a stake in that question because it is a moral issue with implications for the future of the church.”

Baker’s Dictionary of Christian Ethics

25

26

“Every few hundred years in Western history there occurs a sharp transformation. We are currently

living through just such a transformation…Political and social theory, since Plato and Aristotle, has

focused on power. But responsibility must be the principle which informs and organizes the post-

capitalist society. The society of organizations, the knowledge society, demands a responsibility-based

organization.”

Peter Drucker

Post-Capitalist Society

27

““It is futile to argue, as does the American economist It is futile to argue, as does the American economist

and Nobel laureate Milton Friedman, that a and Nobel laureate Milton Friedman, that a business has only one responsibility: economic business has only one responsibility: economic

performance. Economic performance is the first performance. Economic performance is the first responsibility of a business. A business that does not responsibility of a business. A business that does not

show a profit at least equal to its cost of capital is show a profit at least equal to its cost of capital is socially irresponsible. But economic performance is socially irresponsible. But economic performance is

not the sole responsibility of a business.”not the sole responsibility of a business.” Peter Drucker Peter Drucker

Post-Capitalist SocietyPost-Capitalist Society

28

““Responsibility, not to a superior, but to one’s Responsibility, not to a superior, but to one’s conscience, the awareness of a duty not conscience, the awareness of a duty not exacted by compulsion, the necessity to exacted by compulsion, the necessity to

decide which of the things one values are to decide which of the things one values are to be sacrificed to others, and to bear the be sacrificed to others, and to bear the

consequences of one’s own decision, are the consequences of one’s own decision, are the very essence of any morals which deserve the very essence of any morals which deserve the name…A movement whose main promise is name…A movement whose main promise is the relief from responsibility cannot but be the relief from responsibility cannot but be

immoral in its effects, however lofty the immoral in its effects, however lofty the ideals to which it owes its birth.” ideals to which it owes its birth.”

F. A. HayekF. A. Hayek

Nobel Laureate in Nobel Laureate in Economics Economics

29

30

“Capitalism looks back to the future: Capitalism 1 was a world of laissez faire. This concept dominated economics and economic activity from The Wealth of Nations to the

Great Depression. Capitalism 2, the product of that depression, recognized the interdependence of politics and economics and gave government a role in macro-

economic management. It fell apart in the inflation of the 1970’s. The coming of Ronald Reagan and Margaret

Thatcher inaugurated Capitalism 3, a regime of market fundamentalism in which inequality widened and the

financial sector flourished. The credit crunch of 2007-08 is the trigger for an equally substantial revision--

Capitalism 4. The Financial Times Reviewing the book Capitalism 4.0

July 19, 2010

31

“The Future of Capitalism: Now Is the Time for a Less Selfish Capitalism… Accelerated economic growth is not a goal for which we should make large sacrifices. In particular, we should not

sacrifice the most important source of happiness, which is the quality of human

relationships. We have sacrificed too many of these in the name of efficiency and productivity growth. Most of all, we have sacrificed values. In the 1960’s, 60% of adults said they believed ‘people could be trusted.’ Today the figure is

30%, in both Britain and the U.S…So we need a trend away from excessive individualism and towards greater social responsibility. That is

the kind of capitalism we want.” Lord Richard Layard Financial Times, March 12, 2009

32

“Everyone is talking about the new rules of capitalism, which are, don’t just think about the company within

the four walls of the company; think about your obligations to society.”

Indra Nooyi Chair & CEO, Pepsi Davos Economic Forum

The Financial Times July 12, 2010

33

Responsible Investing:Responsible Investing:

A)A)Prudence + B) Ethics = C) Investment Decisions Prudence + B) Ethics = C) Investment Decisions

““The decision to invest in one place rather than The decision to invest in one place rather than another, in one productive sector rather than another, in one productive sector rather than

another, is always a moral and cultural choice.”another, is always a moral and cultural choice.” John Paul IIJohn Paul II

The return and principal value of investments fluctuate with changes in market conditions. The return and principal value of investments fluctuate with changes in market conditions. When redeemed, shares may be worth more or less than their original cost. When redeemed, shares may be worth more or less than their original cost.

Investments seeking higher rates of return generally involve a higher degree of principal risk. Investments seeking higher rates of return generally involve a higher degree of principal risk.

34

“Ethics and spiritual principles should be the basis of everything we do in life. All that we say, all that we think.

Every activity should be based on that, including the selection of investments. You wouldn’t want to be an owner of a company producing harm for the public, and therefore you wouldn’t want to be the owner of a share of a company

doing so. We should all give great attention to that.”

Sir John M. Templeton

35

“Some advisors [including Christian advisors] have been reluctant to use social funds, fearing they would under-perform. Because they must screen out undesirable stocks, social funds may be saddled with extra research expenses, critics argue. In fact, the evidence on fees and returns is mixed. The average large-blend fund tracked by Morningstar has an expense ratio of 1.27%,

compared to 1.10% for the average socially responsible fund. Academic studies have shown

that conventional funds do not out-perform social funds over long periods.”

Registered Rep Magazine August 2008

36The S&P 500 is an unmanaged stock index. It is a registered trademark of the Standard & Poor’s corporation. Investors cannot invest in the S&P 500 index.

37

“If all the super-rich disappeared, the world economy would not even notice. The super-rich are irrelevant to the economy. The combined sources of money from the retail investors, pension funds and retirement plans of all

individuals is the fastest growing source of money. The most important source of capital is

the average mutual fund transaction of $10,000.” Peter

Drucker

38

* “Sin Stock” Screening * Socially Responsible Investing

* Biblically Responsible Investing * Community Development Banking

* Micro-Enterprise Lending

39

Socially Responsible Investing

The return and principal value of mutual fund shares fluctuate with changes in market conditions. When redeemed, shares may be worth more or less than their original cost. Investments seeking to achieve higher rates of return generally involve a higher degree of risk of principal. All information has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy.

40

Faith-based Investing

&

Biblically Responsible Investing

41

Community Development Banking

42

Micro-enterprise Lending

43

“If China and India consumed as much per capita as the United States, by 2030, those

two countries alone would require one additional planet earth to meet their

needs.” Worldwatch Institute

International investing entails special risk considerations, including currency fluctuations, lower liquidity, economic and political risks and differences in accounting methods. Past performance cannot guarantee future performance.

44

““The developed countries have a tremendous stake in The developed countries have a tremendous stake in the Third World. Unless there is rapid development the Third World. Unless there is rapid development

there—both economic and social—the developed there—both economic and social—the developed countries will be inundated by a human flood of countries will be inundated by a human flood of

Third World immigrants far beyond their Third World immigrants far beyond their economic, social or cultural capacity to absorb.” economic, social or cultural capacity to absorb.”

Peter DruckerPeter Drucker

45

““Near the end of the Old Testament, Near the end of the Old Testament, the Prophet Zechariah says that the Prophet Zechariah says that when God’s day comes, there will when God’s day comes, there will

be no distinction between the be no distinction between the sacred and the profane, temple and sacred and the profane, temple and marketplace…The Reign of God is marketplace…The Reign of God is not about churchiness at all. It has not about churchiness at all. It has everything to do with everything.”everything to do with everything.”

Richard Rohr Richard Rohr

Jesus’ Plan For A New WorldJesus’ Plan For A New World

46

“Good intentions are not always

socially responsible.”

Peter Drucker

“Now that you know these things,

happy are you if you do them.” Jesus Christ

47

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