Ted Bauman is the writer of smart money and has a publication called the Bauman Letter, which has 100,000 subscribers. He likes to help his audience with innovative ways to invest their money. Also, he gives legal and personal strategies. Ted Bauman gives advice on the things that strengthen personal investments or that can cause harm.
— Ted Bauman Guru (@TedBaumanGuru) December 4, 2018
Ted Bauman was born in the United States, but once in college he moved to South Africa. After He finished college he went into a non-profit career for 2 decades, which focused on low income housing that helped many out of the slums. In one organization he has helped 14 million people!
In the article “Ted Bauman Explains 3 Possible Stock Market Crash Outcomes” He shines his expertise on the possible outcomes of a market crash which are: return to average ratio, yield curve recognition and crash and bounce. He wants people to understand the importance of the changes that can cause a negative effect on the stock market.
He explains how the market is overvalued right now. He gives insight on the cape ratio (price- to- earning), which compares corporate earnings stock over the past 10 years. He says that with the ratio being at a 32 if it goes back to normal ratio which is a 17, the stock market will drop 35 percent. He continues to Explain that the first to be affected in this scenario will be the investors.
Ted Bauman also explains that since the interest rates of bonds are staying low on long term investments there is nothing that will dramatically change the economy. If a recession happens then the S&P 500 will drop 25 percent. This could happen in the 4th quarter if an impeachment happens after the recession.
Lastly, He talks about a rise happening after a drop. The drop will happen because of rule-based selling but will be partially recovered. This scenario is like the 1987 Dow Jones 1 percent a day drop incident. If this happen to the S&P 500 it is likely to drop 18 percent.
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