A prolific and well-respected financial writer and businessman, with three decades of experience working with investment circles abroad and in the U.S., Ted Bauman understands the stock market. As he explains it, the financial service reports he edits use several algorithms that other agencies do not. In fact, his Banyan Hill Publishing reports have trumped findings generated by Standard and Poors 500 Index numerous times.
The recent bullish market inspired Bauman to use his analytical prowess to come up with some fiscal prognostications for his readership, using the Cape Ratio, Bauman’s preferred analytical tool. The Cape Ratio adjusts company earnings according to inflationary rates to create a clear view of stock market affordability for a specific window of time. Using it in this case showed a numerical value of 32, almost twice its average historical ratio. To revert to a normalized ratio would incite a 35% market drop. Although Ted Bauman also noted that this could play out over many months.
Ian King on Fox Business News – Hurricane Florence: What the Aftermath Means for Insurance Stocks…https://t.co/MEu6Tpcoyr#NASDAQ #SP500 #NYSE #Investing #Commodities #Resources #Economy #Politics #Trading #Stocks #BanyanHill #HurricaneFlorence #Florence2018 #MarketUpdate
— Ted Bauman Guru (@TedBaumanGuru) September 17, 2018
Another potential scenario as Ted Bauman saw it, though based on an assumption of overall economic stability, was one where a quick drop was followed by a partial recovery. A drop of 18%, for example, would constitute a significant crash. But, a relatively speedy recovery could ensue. Reference the 1987 Dow Jones Industrial Average drop, which was its biggest. But, as Ted Bauman also pointed out, stocks had rallied by 10% at year’s end.
A mere few months away from these crystal ball musings, it’s unclear yet which Ted Bauman scenario could play out on the market stage, or whether some hybrid might emerge. Bauman, credits his financial writing with providing him with a means to assist others, while also affording him the greatest sense of fulfillment he’s found throughout a long and satisfying career. He takes pleasure in giving wealth seekers a heads up whenever he can and cautions investors to not act with rash haste should a crash come. And for those planning to invest, he suggests implementing investment strategies with a view of dealing with an incipient plummet.