The long-lived bull market causes many to worry about when it will all come tumbling down. Ted Bauman has 20 years of experience in finance and investing. He serves as an editor and writer at Banyan Hill Publishing. Bauman’s first newsletter is the Bauman Letter. He also publishes a stock-trading guide called “Smart Money.”
Ted Bauman gives the market a 50% chance of continuing to grow in the near term. But it has a 50% chance of plumbing new depths. Bauman offered up some comments on markets in a recent article on Gazette Day.
Ted Bauman worries about the dangers of rules-based selling. Algorithmic trading is another name for such selling. He says that kind of selling was part of what caused the 1987 stock-market crash. Bauman observed that those who did not engage in panic-selling came out unscathed. He feels most stocks are overvalued. A reassessment of their value could lead to dividends that can’t cover losses. He expects long-term interest rates to go up in the near future. He says higher rates could hit the S&P hard. But he says not to panic. He advises readers to take the long view.
Bauman feels the key is to focus on protecting your assets. He counsels not trying to hit home runs. He often advises balanced mutual funds. Such funds offer a mix of stock and bonds. The combination may perform well in both up and down markets.
Bauman was recently interviewed on Inspirey.com. The interview offers insight into Ted and his worldview. Bauman was born in the US. He moved to South Africa while a young man. He attended the University of Cape Town. He graduated with a B.S. His disciplines were economics and history. Ted’s early experience was in managing funds for low-income housing. That gave him a decidedly different outlook on economics. The experience demonstrated that finance and investment could not be separated from politics.
Ted Bauman said going into business came from his desire to help others. He wanted to help small investors guard their rights against threats from government and large business. His father is a well-recognized writer on finance and investment. He said his fledgling newsletter benefited from his father’s reputation. Bauman points to time management as vital to his success. Effective time management leads to productivity. Productivity leads to success.
Bauman went on to offer advice on reading, writing, and technology. He recommended reading “Capitalism in the 21st Century”. He found the book inspiring. He feels critical thinking gives his writing its vitality. He likes to provide practical examples to help his readers grasp complicated financial topics. Bauman believes it is essential to keep abreast of the latest productivity software. Recently, he purchased software to make it easier to create portfolios.