Rising COVID cases.
Potential interest rate hikes.
Any one of these could trigger a sharp market correction. That’s why this week, Ted Bauman and Clint Lee are talking once again about hedging your portfolio.
They identify three conditions that have turned the U.S. stock market into the proverbial “mousetrap” ready to spring. But have no fear: Ted gives six compelling reasons why REITs are the ideal “Plan B” against a potential FAAANM stock crash.
The Market Is Still a Mousetrap
Back in July, Ted wrote in a Bauman Daily article that the stock market was like a mousetrap.
It was so dependent on what the Federal Reserve said that it would react with extreme movements up or down.
Today the market is still a mousetrap.
But instead of it being about the Fed, we’re now concerned with three other factors, one being margin debt.
According to Wolf Street, “Stock market margin debt spiked by $33 billion in October from September to another all-time high of $936 billion, up by $277 billion, or by 42%, from a year ago, and up by 67% from October 2019.”
This is no joke. That’s why Ted and Clint take the time in today’s video to explain what’s going on and how you can prepare for the worst-case scenario.
Click here to watch or click on the image below:
Publisher, The Bauman Letter