Ted Bauman has had over 20 years of financial experience.He joined Banyan Hills Publishing in 2013 and as the editor for three publications, The Bauman Letter, Plan B Club, and Alpha Stock Alert. These publications specialize in low-risk investment strategies, asset protection, privacy, and international migration issues. Ted Bauman graduated from Cape Town University with a post-graduate degree in Economics and History. Before working for Banyan Hills Publishing, he worked in South Africa primarily as a fund manager on low-cost housing projects.
It’s never too early to do everything I’ve described here. If you haven’t, get started on it now, no matter how young and healthy you may be.https://t.co/1B7OQpDFTi#PrivacyProtection #PrivacyCode #Stocks #StockMarket #AlphaStockTrader #TheBaumanLetter #BanyanHillPublishing
— Ted Bauman Guru (@TedBaumanGuru) April 24, 2018
Possible Stock Market Crashes
Ted Bauman uses the CAPE ratio to look at the value of the stock market. The CAPE ratio compares a corporation’s earnings to stock prices over ten year period. The current CAPE is currently double the historical high. If the CAPE went back to the normal 17 investors might bail to find profits elsewhere. The investors might also decide that alternative assets look like a more appealing option.
If there is a recession, it could cause the S&P 500 to drop at least 25 percent. It is because of low long-term bond investment rates. There could also be a rise in stocks followed by a drop like there was in 1987. Stocks were back up by ten percent at the end of the year. For this to happen again, the S&P 500 would have to drop 18 percent.
How to Protect Investments
Ted Bauman believes in building a strong defensive strategy planning investments. Instead of trying to get rich quick it is more profitable to be patient and wait for good investments to turn a profit. It is also important to invest in both stocks and bonds. Bonds are not as likely to suffer huge drops overnight making them a safe investment. Bonds will help protect the portfolio when the stock market crashes. Stocks can boost that portfolio when stocks are high.
To know more click: here.