Ted Bauman has been advising individuals to start adopting defensive investing strategies. He is of the opinion that the bull market in US stocks has about run its course. He admits that there is still a little more room potentially for equities to rise, but he feels a stock market crash is just as likely to happen. Ted Bauman is an economist who spent much of his life living abroad in South Africa. He currently writes three newsletters for Banyan Hill Publishing. He has advised his subscribers to be cautious regarding US equities because he feels there are several potential catalysts that will kill the US bull market.
Ted Bauman feels that rising interest rates could prick the stock market bubble and end the bull market. The federal reserve has been rather aggressive in raising interest rates. Mr. Bauman points out that the US economy may not be able to handle a fed funds rate of four percent because of all the debt in the system. At the current pace of the fed rate hikes under Chairman Jerome Powell, the fed funds rate would hit four percent by 2020. Other analysts feel that the US economy will not be able to handle rates as low a three percent.
Ted Bauman feels the bull market in US stocks could also end simply because the US stock market is too overvalued. After using the CAPE ratio to value the US equities market, the ratio gave a reading of 32, which is almost twice as high as the historical average. Mr. Bauman feels that it is only a matter of time before stocks return to their fair value. He feels that stock prices will start to fall rapidly when more investors come to the same conclusion regarding the overvalued stock market.
The trade war is the potential catalyst that worry’s Ted Bauman the most. He points out that China has done very little to retaliate against the measures the Trump administration has already taken. The Chinese government could easily hurt US multinational corporations that rely on doing business in China. This could result in many billions in lost revenue, eventually reflecting in the share prices of these companies.
The island of Hawaii has many active volcanoes, including Mauna Kea and Mauna Loa. These volcanoes in the small Pacific island chain have been active for decades. The volcanoes are ejecting lava which is rich in minerals, and some of these are heading straight to the island’s springs, mixing with water. The mineral-infused water from Hawaii’s springs are known for its health benefits, and people are drinking it with the belief that it would make them more active and healthy. The miraculous water from Hawaii’s volcanic island caught the attention of a private firm, and they collected the water from the island and sold it under the brand name Waiakea Water. The company claims that the water they sell is one of the purest and cleanest bottled water on the planet, and it has a lot of health benefitsto those who would be drinking it. Waiakea Water is now being sold across the United States, and many people who have tasted it said that the water feels refreshing and their energy levels went back after taking a sip.
Waiakea Water is also proud to say that their products are using an eco-friendly bottle that would never pollute the environment. It is one of the few bottled water companies in the market offering such features, and they said that through protecting the environment, they are giving the island of Hawaii a favor. The company is also urging the people who are buying their products to recycle, and not to throw their trash anywhere, to minimize the damages on the planet. Waiakea Water is an example of a responsible company who influences its customers to stick to being eco-friendly. Through their efforts, the number of plastic trash can be minimized, and people could start thinking about protecting their environment.
Aside from their campaign against littering, Waiakea Water is also a partner of several organizations operating in Africa. Every portion of their sales from the bottled water comes straight to the funds of their NGO partners, which are providing free water to impoverished African states.This year, Waiakea Water’s primary goal is to provide clean water for the people of Malawi, a landlocked African country without access to clean water.