Should we be focused on building wealth right now?
Yes. More than ever we need to be paying attention to where we are keeping, and spending our money.
The West speaks in money – it is high time our community starts actively speaking this language.
If you are a Muslim investor – make sure none of your money is being held in government bonds.
Second, make sure none of your money is being held in mutual funds with investments in the aerospace and defence industry.
Next – we need to be more focused than ever on growing our wealth in an ethical way. With the impact of social media, our voices and our numbers are being amplified like never before.
Having the funds available in our community to create targeted marketing campaigns that actively amplify Muslim voices is the future.
How does the stock market perform in times of war?
In the US, 12% of all federal spending goes towards defense. The defense industry is worth over 613 billion dollars.
There is no doubt that any increase in military conflict around the world will contribute to the US economy and stock market overall.
You will read many articles that link war to an increase in the value of the US stock market.
That being said – as Muslims, defense stocks are not Halal and it is difficult to predict how other stocks will be affected.
How should you be focusing your investing right now?
DCA: Dollar Cost Averaging
DCA is when you commit to investing a monthly amount regardless of stock/ETF prices. Although some months you will buy stocks at a lower price, and other months at a higher price – you will benefit from the average price.
This way you will benefit in the long-term from the general upwards trend of the stock market without worrying about the daily volatility.
Use Zoya
To find out if stocks you are considering purchasing are Halal or not. Stay away from mutual funds offered to you by the bank as many will include US bonds and defense stocks.
To summarize:
Yes, we should all be investing right now in order to grow our wealth as a collective inshAllah. We should however be incredibly careful and intentional with where our money is being invested.
