Economist Ted Bauman specializes in low-risk investing strategies and wealth preservation. With investors all in as far as US equities are concerned, these investment strategies are currently unpopular. Who needs low-risk investing tips when all the US stock indices continue to make new highs. However, there are some analysts who are beginning to feel rather nervous about US equities. Ted Bauman is not advising that investors ditch stocks, but rather to adopt a more defensive approach, especially due to the fact the US stock market is more overvalued now than it ever has been in history. As an economist rather than a stock picker, Mr. Bauman looks at macroeconomic trends that will affect the markets.
— Ted Bauman Guru (@TedBaumanGuru) October 8, 2018
Ted Bauman is pushing caution regarding stocks. He advises people to not try and time the markets. He says that many times a market will suddenly tank, only to immediately rebound soon after. Traders who panic in these situations tend to lose money. One area that Ted Bauman sees value in is Chinese equities. The Shanghai Composite has fallen eighteen percent since the start of this year. The ongoing trade war between China and the US has made many of the Chinese stock’s super bargains. To combat the tariffs imposed by the Trump Administration, China has devalued the yuan. Mr. Bauman is against the trade wars and feels that it is only going to have negative implications for the global economy, however, he feels that the trade war is creating opportunities for investors to place their funds in areas other than overvalued US stocks.
Ted Bauman is not so optimistic about US equities. He feels that they are way overvalued, which is one of the main reasons he is pushing investors to start adopting defensive approaches to investing. He feels that an investor should have a healthy balance of stocks and bonds in their financial portfolios. He has observed that one of the biggest mistake’s investors make when it comes to asset allocation is that many will neglect to have bonds in their portfolios. Bonds can help investors weather a stock market crash, but investors should also never just unload their entire equity positions either. Here’s How the Bull Market Dies