Ted Bauman, Author at Banyan Hill Publishing

Ted vs. ARKK

Posted by Ted Bauman | Jan 14, 2022 | Big Picture. Big Profits., Investing, Trading Strategies

One of the hallmarks of an asset bubble is that investors increasingly rely on “faith and love” to justify their decisions. Indeed, hanging on to promising stocks when they’re down is critical to long-term returns. That’s why I always remind Bauman Letter readers to stay smart and tough. But the smart part is critical. In today’s video, I look at recent market performance in the context of rapidly rising interest rate expectations to identify the stocks that justify faith and love … and those that don’t.

Get Ready for 2022’s “Big Short”

Posted by Ted Bauman | Jan 11, 2022 | Big Picture. Big Profits., Economy, Investing

Originators handed out adjustable-rate mortgages (ARMs) like Halloween candy. Big banks packed them into MBS. They bribed agencies for AAA ratings. Then they sold them to unsuspecting investors. The shorts predicted that when ARMs began to reset in the second quarter of 2007, the MBS market would collapse like a Jenga tower .That’s exactly what it did. Their short bets earned them billions. The rest of the financial system collapsed. All through the movie, I kept asking myself one question … where’s the opportunity for today’s Big Short?

The Fed’s Great Switcheroo

Posted by Ted Bauman | Jan 7, 2022 | Big Picture. Big Profits., Education, U.S. Economy

The narrative around the Fed’s increasingly hawkish stance is that it’s reacting to consumer price inflation. That’s part of it, but I’m convinced Powell & Co. are playing at a much bigger game. Ever since the great financial crisis, asset markets have become unhealthily dependent on easy money. Besides exacerbating inequality, artificially inflated asset markets are prone to bubbles and bust. That’s why the most incisive market watchers have been saying for a long time that the Fed’s biggest challenge is to end this dependency once and for all. If that’s what the Fed is doing, how’s it going to affect markets? More importantly, which assets will suffer, and which will prosper?

Prepare for the Reversal of the Perpetual Motion Machine

Posted by Ted Bauman | Jan 3, 2022 | Big Picture. Big Profits., Economy, Investing

“Active managers” are hedge and mutual funds that constantly trade in and out of stocks to outperform the market. The opposite of active management is (you guessed it!) passive management, also known as indexing. An index fund holds stocks from a specific segment of the market, or index. Each stock is held in exact proportion to its weight in that index. The most common form of indexing is exchange-traded funds (ETFs). If you want to invest in the S&P 500, for example, you buy the SPDR S&P 500 ETF Trust (NYSE: SPY). As the index performs, so the fund performs. If active managers are supposed to be so good, why do they keep underperforming the market and passive index funds? And what could change that? The answer will surprise you…

2021: What Went Wrong?

Posted by Ted Bauman | Dec 31, 2021 | Big Picture. Big Profits., Economy, Investing

6 out of 10 fund managers failed to beat the market benchmarks in 2021. After 2020 saw record-breaking stock gains, why was this year so difficult? In his last YouTube video for 2021, Ted Bauman explores what happened to the investment game this year. Then he explains how to improve your odds of finding investment winners in 2022.

Author: Ted Bauman

Ted vs. ARKK

Get Ready for 2022’s “Big Short”

The Fed’s Great Switcheroo

Prepare for the Reversal of the Perpetual Motion Machine

2021: What Went Wrong?

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