Born in Washington D.C., Ted Bauman moved to South Africa as a young man, living and working there for 25 years. Because of that experience, he has insight into South Africa’s stock market that other analysts in the United States lack. According to his analysis, until the last elections, South Africa was suffering from political and economic mismanagement. This naturally adversely affected the value of its stock market. During the election, the people voted in reformers who had different ideas about how to run the country. When this happened, Bauman knew the country’s economy and its stock market would go up in response.
Because of his insight and analysis, Bauman increased his investments in South Africa. In just three weeks, those investments went up 13%. In the United States, the S&P 500 went up only 2.5% in that period. And Ted Bauman believed South Africa’s markets would continue to rise, so he bought the iShares MSCI South Africa ETF. His investments went up, 70% higher than the S&P 500 for the same period.
Now Bauman believes that many emerging markets such as South Africa will have bull runs in the coming year. Yet everybody on Wall Street is looking just at the U.S. stock market. The S&P 500 has been going up at a tremendous rate, so nobody is paying attention what is happening in emerging markets, where stocks are rising even higher. And Bauman predicts that trend will continue in 2018.
One reason emerging markets stand to do well is the United States dollar is losing strength. In 2017, the dollar had its worst performance in 14 years. If a country’s currency goes up in value against the United States dollar, then its price in U.S. dollar goes up. However, the high performance of emerging markets in 2017 was mainly due to stronger corporate earnings. Visit medium.com for more info.
Therefore, he recommends investors buy such exchange traded funds as iShares Core MSCI Emerging Markets ETF (NYSE: IEMG), iShares MSCI Emerging Markets ETF (NYSE: EEM) and Vanguard FTSE Emerging Markets ETF (NYSE: VWO).
Bauman is the Editorial Director at Banyan Hill Publishing. He edits his own newsletters, The Bauman Letter and The Plan B Club. He gives his subscribers the latest information on how they can live with the least amount of government interference and the most privacy. He constantly looks for safe ways to keep and maintain your wealth using asset protection strategies.
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