Is it sinful for Catholics to make money on interest and the stock market?

[edjlopez23]

I’m thinking about playing the stock market but was wondering if it’s sinful to collect interest in my account or collect passive money. Of course, I won’t try to invest in bad companies.

 

[White_Tree]

No, it’s not sinful.

In fact, the USCCB practically says so themselves. See here for the guidelines they follow with their own investments:

http://www.usccb.org/about/financial-reporting/socially-responsible-investment-guidelines.cfm

Under their First Principle of Stewardship, they state the following [italics added]:

Principle 1: The Conference should exercise responsible financial stewardship over its economic resources. In practical fiscal terms, this means obtaining a reasonable rate of return on its investments. For example, the Conference now expects its managers to perform at least at the level of the market. In some areas the Conference has an actual fiduciary role (e.g., pensions). This requires caution in terms of risks taken with Conference resources.

Note the section I highlighted, “the Conference now expects its managers to perform at least at the level of the market.” The only way to perform at least at the level of the market is to be in the market. You cannot get those types of returns by simply holding cash.

In other sections of the document, they talk about their own responsibilities as shareholders, which implies they are holding stocks. So if the USCCB is doing it, it should be okay for you.

 

[edjlopez23]

The only way to perform at least at the level of the market is to be in the market. You cannot get those types of returns by simply holding cash.

What does this mean? Does that me the investor have to be active in it’s involvement or can he try to collect passively?