Ted Bauman: The Need For Defensive Investing

Ted Bauman is an economist whose experiences in life have led him to appreciate the working class and to get society to lend a hand to those who are less fortunate than others. He started his young work life in the fast food industry and worked at gas stations. As a young man, he left the United States and moved to South Africa. He studied economics at the University of Cape Town. Much of his career involved him taking managerial roles in nonprofit housing projects. He has performed research for the United Nations and has had work published in journals around the world. He is currently living in the United States and is an editor for Banyan Hill Publishing.

Ted Bauman focuses on low-risk investing strategies these days and with the stock market in the longest bull market in history, it may be time for investors to take a defensive approach to protect some of the profits they have made. Many financial analysts remain optimistic about equities and believe the current bull market will remain intact. Ted Bauman is taking a broader view of the markets and believes that there are factors at play that could kill this bull market. He points to the Federal Reserve raising interest rates. Mr. Bauman believes that if the Fed raises interest rates to four percent, the bull market in US stocks will end and that by 2020 rates should be there. He also noted that the ongoing trade war between China and the US could possibly cause a selloff.

Ted Bauman believes that so many factors could cause lower stock prices, but he warns investors to not try to time the stock market. It may take several months to a year for a bear market to be fully recognized. He also brings up in 1987 when at the time stocks saw the largest one day drop. The plunge in stocks scared most traders out of their positions. The wise investors held and bought in at lower prices and ended the year with a profit. Investors should maintain a healthy balance of stocks and bonds to protect their portfolio.

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