Ted Bauman became an editor of the Banyan Hill Publishing in 2013. He spent his entire life helping others to live a fruitful life. He was born in Washington, D.C and was raised in Maryland. He traveled to South Africa and graduated with a postgraduate degree in Economics and History. Ted served in executive roles as a fund manager for housing projects. He’s also aided the foundation of Slum Dwellers International, which helped over 12 million people. His experience in past careers holds value to those wanting to invest in the stock market. Since Ted Bauman explains 3 ways the stock market can crash in the future.
The U.S stocks are overvalued. The corporate earnings to stock prices are double the ratio than it’s average historical ratio. That means if the market were to return in its normal ratio of nearly 17 percent, then there would be a drop of more than 35 percent in the market. Ted distinguishes two effects of the stock market, one being the investors wouldn’t get their dividends back and two alternate asset returns become appealing to investors.
There’s a yield curve in the U.S Treasury. The bond markets have low expectations for the economy in a few years. If a recession happens, the S&P 500 can drop more than 25 percent. According to Ted Bauman, this can happen if there’s a shift in the house with impeachment following it.
His third possibility is that there will be a rise followed by a drop. The possibility can happen if there’s nothing with the economy or the market. The drop happens quickly after it’s rules-based selling. Then a partial recovery ensues after this drop. Ted Bauman’s response to his possible outcomes is to stay calm and prepare yourself for such future events. He encourages people to read his May issue of the Bauman Letter which informs the readers 7 good strategies for the market. Ted Bauman enjoys helping people understand the stock market and devotes his time educating others about the economy.