In a current article in Banyan hill, Ted Bauman an investment expert explained three possible scenarios that can make the stock market to crash. Ted Argues that the present bull market might continue. However, there are chances also that it might plummet. Ted has experience as well as a proven success when it comes to investments. He was born and raised in the United States of America but later moved on to do his studies in South Africa. After he studied economics and history, he started working with a non-profit industry, a career that traversed over two decades. In addition to this, he concentrated on projects dealing with low-cost housing that helped many individuals out of slums. He co-founded one organization that has so far helped over 14 million people in several countries.
During his time in South Africa, he gained knowledge and experience with low-risk investment approaches. Currently, Ted Bauman stays in the United States where he is a writer of three newsletters that concentrates on in privacy, asset protection, international migration issues as well as low-risk investments. Banyan Hill Publishing claims that they are very grateful with the value that Ted has added to its publications. In his current article on Banyan publishing, Ted states that three likely scenarios can lead to the crashing of the stock market.
His first possible scenario is a return to the average ratio. In the article, Ted says that the United States of America stocks are overrated. Ted uses the CAPE ration to compare the stock prices and the corporate earnings over a ten-year period. With the present ratio of S&P 500 being 32, this is nearly as high as its records in history. Moreover, the current CAPE ratio is double when compared to the historical rate. There is likely to be a drop of about 35% if the markets are going to get back to the usual ration of almost 17. According to Ted Bauman, this shift will take over ten years before it can happen.
Ted Bauman’s second scenario involves yield curve recognition. Ted claims that investors are likely to recognize such a curve from the treasury of U.S. The interest rates for long-term are staying low, and that means that the difference between then and the ones of short-term is a modest amount. In his last scenario, Ted Bauman argues that there is always arise after a drop. This could have been the case if nothing went wrong with the market as well as the economy.