Ted Bauman says that it’s easy to kill a bull market. All you have to do is raise interest rates to 4 percent. This isn’t something that people need to be worried about today because it probably won’t happen until next year. It won’t happen at all if the economy starts to slow down before that.
Ted Bauman says that the current bull market will die down if China and the United States continue with the trade war. On June 30, the Trump administration will release what it knows about China and trade, and you can expect it to be fantastic!
The U.S. annual deficit amounts to more than $330 billion with China; with the rest of the world, it is equal to $550 billion. President Trump believes that the tariffs he put in place will turn those two situations around because this trade imbalance is due to the American government and American corporations that left and set up shop in foreign countries.
The corporations that went to China are warning President Trump to address this issue very carefully because they are making nearly $100 billion a year in China.
When economists include the money that corporations are currently making in Canada and Mexico, the deficit actually becomes a surplus, and Ted Bauman says that the same thing happens on the global level.
According to Mr. Bauman, there is a 50 percent chance that the stock market will continue to rise, but there is also a 50 percent chance that the stock market will take a dive. He advises his clients that rather than panic, they need to manage their portfolios carefully.
Ted Bauman earned his Bachelor of Science in Business Administration in 1983. He earned his Master of Business Administration in Finance in 2001. He is currently the editor of Banyan Hill Publishing Company.