Ted Bauman, an expert in finance, can tell a lot by a quick look at the stock market. He’s so good at it, that he can tell you when it’s about to crash. He has been writing for Banyan Hill Publishing now for some time. Recently, he explained 3 possible outcomes that may arise if the stock market crashes.
Ted Bauman believes that the bull market may continue, but he also had the guts to say it could crash all the same. Everyone likes to get his opinion because of his experience and his proven track record. He went to college in South Africa, and what he learned there for low-risk investment strategies was nothing short of astounding. His newsletters that he writes today here in the United States are all focused on low-risk investing, the financial climate of South Africa.
Banyan Hill was singing praises for Ted Bauman after he published a newsletter that was focused on 3 possible outcomes for a crashing stock market. He talks about three primary areas including a return to the average ratio, yield curve recognition, and crash and bounce. The first one is based upon his opinion that US Stocks are overvalued.
The yield curve recognition has to do with long term interest rates staying low. Ted Bauman says to know the difference between the curves and the short-term yields, is can challenging to recognize. While the S&P could drop more than 25% if there is a crash, a majority shift of the house would impact it more than ever. That’s when we have to think about things.
Thirdly, Ted Bauman says that a rise could follow a drop. A quick drop could occur after rules-based selling. Overall, he says that waiting things out is better, but he always goes back to history to look at similar situations. Panic induced actions is where the markets can really experience a problem. Making decisions that are thought out and well-planned are better than freaking out and making a really bad choice before spending or investing.