“The harder they come, the harder they fall.”

Was Jimmy Cliff singing about the stock market?

He might as well have been. And the Federal Reserve tapering may be just the thing that triggers that fall. Since the start of the pandemic, the Fed has spent $4 trillion on assets — catapulting the stock market to new heights.

In this edition of Your Money Matters, Ted and Clint explore “what if” the Fed starts winding down its purchases … what you can do to prepare … and which sectors could provide the best protection.

Anticipate the Potential Pullback

In June, Ted wrote a Bauman Daily article about our Fed-centric world and the dramatic impact of its policies on the stock market.

Since then, our central bank’s balance sheet has only risen higher — doubling in 18 months. And the market has kept moving upward … there hasn’t been a 5% pullback in 200 days.

But what does this all mean for you? Is it time to prepare for the worst drop ever? Ted and Clint provide some “rules of thumb” when anticipating a possible market drop. They even predict just how low it might go.

Watch today’s installment of Your Money Matters to also find out:

  • What one unsettling mean reversion chart tells us.
  • How this 10-year stock market return chart might be the key to what will and won’t work during the aftermath.
  • How Bank of America’s Treasury yield estimate is a “barn door guesstimate” and what this means.
  • And more.

Click here to watch this week’s video or click on the image below:

(Click here to view video.)

Good investing,

Angela Jirau
Publisher, The Bauman Letter