Opinion Editorials

Mon, 02 Dec 2024 00:00:00 +0000

The following editorials provide thought provoking perspectives from the unique vantage point of a 40 year stint in academic finance (3 years in a PhD program and 37 years as a professor) coupled with being a follower of Jesus Christ. Obviously, any deviations from biblical theology are solely the responsibility of this author. Every effort is made to be faithful to the Christian worldview while engaging in various finance topics.

These are “living” documents in that they will be refined over time. Your feedback would be greatly appreciated. You are welcome to forward these documents, but please respect the copyright. If you are a publisher, please contact me directly.

Op-Ed 25-O2: BRI DFA Case Study compares one positivist application within investments—DFA funds—with one normative application—BRI funds. Bottom line: The investment performance over the past year is roughly similar. Thus, based on this anecdotal evidence, Christian investors are warranted in voting with their wallets as they choose BRI-based funds over other alternatives, even those alternatives asserting Nobel Prize winner-based “financial science.”

Op-Ed 25-O1: Religious Accommodation Within DC Plans provides justification for Christians to seek religious accommodation within defined contribution plans. Religious accommodation through the brokerage window is a low-cost, high-impact solution that aligns with regulatory guidance, fiduciary principles, and participant values. It is not just permissible—it is prudent.

Op-Ed 24-O5: From Jesus to Wall Street: Harnessing the Christian Worldview for Wiser Investments contrasts the worldviews of naturalism and Christianity with a primary focus on investments. Further, this article is a more detailed response to Drew Estes’ From Darwin to Wall Street: Harnessing Evolutionary Theory for Smarter Investments. A concise rebuttal based on theism is given in the article From Darwin to Wall Street: A Rebuttal available at Enterprising Investor ( https://blogs.cfainstitute.org/investor/ (05 November 2024)). This article is more focused on Christianity rather than theism though it borrows heavily from the rebuttal article.

Op-Ed 24-O4: Tigers and Ghosts: Distinguishing Between Financial Risk and Uncertainty focuses on financial decision-making. With these decisions, there is typically the challenge of managing future uncertainties. The goal here is to connect the historical shift from managing uncertainty to managing risk with the ultimate question of ownership. If the Christian worldview is correct, then we are resource managers and not owners. This is a profound shift as it requires understanding the desires and preferences of the owner to make improved financial decisions.

Op-Ed 24-O3: Economic Prediction and the Christian Worldview explores the limits of economic prediction within the context of personal investing, specifically from a Christian worldview. We conclude that great caution should be exercised when making financial decisions based on one’s economic predictions. As a rule, we are much better off in our financial decisions when based on the humble admission that our own economic predictions are most often severely flawed. Significant improvement to our personal wealth is likely when starting with the following assumption: Better financial decisions are made when conceding little, if any, economic forecasting ability.

Op-Ed 24-O2: ESG or ESV: Implications for Firm Structure identifies two distinct firm structures that are drawn from these two perspectives. Specifically, two mutually exclusive theories of the firm are reviewed, environmental, social, and governance (ESG)-based and enhancing shareholder value (ESV)-based. Biblically, we know God is the owner of everything, including financial instruments. Further, there is ample evidence of a God-orchestrated hierarchical structure. Adam and Eve were to serve in a fiduciary capacity to manage God’s resources in a prescribed manner complete with responsibilities and restrictions. In many respects, it is the fact of human’s being created in God’s image (Latin: imago dei) that separates an ESV-focus and an ESG-focus.

Op-Ed 24-O1: Biblically Responsible Investing Within Efficient Markets is a call for the BRI community to birth a “Virtuous Vanguard.” With the emergence and maturation of the Biblically Responsible Investing (BRI) community, the time has come to create BRI-based instruments (e.g., ETFs) that combine the low cost, passive investment approaches with some form of “Mere Christianity” vetting.

Published Op-Eds and Other Testimonies:

“It Takes A Voluntary Village,” National Review, (July 28, 2021), online edition, https://www.nationalreview.com/2021/07/it-takes-a-voluntary-village/. Accepted in July 2021.

“Restoring the Crumbling Foundations of Corporate America,” National Review, (May 7, 2021), online edition, https://www.nationalreview.com/2021/05/restoring-the-crumbling-foundations-of-corporate-america/.

Invited Testifying Witness, United States House of Representatives, Committee on Financial Services, Subcommittee on Capital Markets and Government Sponsored Enterprises, The Impact of the Dodd-Frank Act on Municipal Finance, July 20, 2012. Webcast and written testimony available at http://financialservices.house.gov/Calendar/EventSingle.aspx?EventID=303098.

Panelist, U.S. Securities and Exchange Commission Municipal Finance Field Hearing, July 29, 2011. Served on two panels: Distressed Communities and Derivatives Use in Municipal Finance. Transcripts are available at http://www.sec.gov/spotlight/municipalsecurities/munifieldhearing072911-transcript.txt and opening remarks available at http://www.sec.gov/spotlight/municipalsecurities/statements072911.htm.

Exploring the Philosophical Roots that Influence Financial Fruit

Sun, 01 Dec 2024 00:00:00 +0000

Exploring the Philosophical Roots that Influence Financial Fruit: A Christian Perspective is now available on Amazon. The blue title above takes you directly to the book’s page on Amazon.

This book provides a unique perspective on personal finance with a singular focus on the chosen foundation; that is, philosophical roots. Thus, financial fruit is based on philosophical roots. The reason financial plans frequently fail is because strategies are initiated to produce financial fruit without first preparing its fertile ground. We all appreciate the reality that financial ideas do have consequences, but more importantly financial ideas have antecedents. Antecedents here references preceding foundational beliefs or one’s worldview. In this book, we explore the Christian worldview as the very best foundation for life with a focus on personal finance.

Personal financial plans do not often fail due to flawed logic or lack of knowledge and understanding. Rather, these plans fail because they are pursued without solid theological and philosophical grounding. Like a pair of glasses, one’s worldview deeply influences the multitude of decisions made each day, especially financial decisions. Here we offer the Christian worldview as the only true one; hence, it will prove fertile ground for addressing life’s challenges especially those financially-related.

A video that explores some of the connections between the Christian worldview and personal finance can be found at the YouTube channel Church for Skeptics:

Church for Skeptics: April 13, 2022 Episode

A video that explores some of the connections between the Christian worldview and inflation can be found at the YouTube channel Church for Skeptics:

Church for Skeptics: March 1, 2023 Episode

A video that explores financial philosophy and how worldview impacts financial decisions. Please see Untamed Ethos Episode 22:

Untamed Ethos with Dr. Joshua I. Wilson: February 26, 2024 Episode

Personal Finance

Mon, 08 Jan 2024 00:00:00 +0000

The following podcast was created by Will Johnston in 2019 addressing the link between a Christian’s finances and the Christian activity of making disciples.

Podcast

The following WalletHub Q&A provides a unique perspective on getting out of credit card debt.

WalletHub Credit Card Questionaire (January 2017)

WalletHub Credit Card Questionaire (July 2020)

Philosophy and Finance

Sat, 06 Jan 2024 00:00:00 +0000

Philosophy and Finance is primarily a working paper posted on my SSRN page. See Ethics in Academic Finance: A Normative Apology. Also, the Financial Fruit Based on Philosophical Roots materials extensively covers introductory materials on philosophy as it applies to personal finance.

Personal | Robert E. Brooks

Opinion Editorials

Exploring the Philosophical Roots that Influence Financial Fruit

Personal Finance

Philosophy and Finance