Recently, someone I follow on Twitter recounted how a friend had invested some money for his child. He expected an annual average return of 16% on that investment. He based this on the compound annual return of the total U.S. stock market over the last decade. There’s only one problem: Past performance is no guarantee of future returns.
The professors respected the quality of my arguments. But because my conclusions were not “correct,” they invariably gave me one point below the top grade. You might think I would’ve eventually learned the error of my ways…I’m proud to say I never have. To this day, I embrace beliefs considered heretical in the mainstream economics profession … beliefs that will continue to make tremendous stock market gains for readers of The Bauman Letter into the next decade.
As the Treasury yield curve goes “inverted” and Wall Street panics, I break down the practical results of yield curve inversions, the prospects of a near-term recession and what you can expect for your portfolio in 2022.
Find out this and more in your Friday edition of Big Picture, Big Profits.
Said another way, fear of missing out — FOMO — is still omnipresent in the markets today. So now investors face a tough choice: get out of stocks or follow the pack? Let me show you a few things I’ve learned in the last epic stock market bubble … and how to come out ahead without a second thought for the herd.
That led to a discussion of ways to make money in a downturn. We covered hedging currencies, like the Swiss franc and Japanese yen. We spoke about gold. We considered commodities, agreeing they were a good short-term play, but would suffer if rising interest rates led to a recession. Eventually, we came to inverse leveraged exchange-traded funds (ETFs) … those tempting plays that promise to make money when markets decline…
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Early in his career, Shad cut his teeth in the world of music marketing [...]
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Editor of Strategic Fortunes and three elite services
Chief Investment Strategist of Money & Markets