Ted Bauman is an economist who believes that the US stock market is on the verge of collaps. There are many individuals on Wall Street who feel that the stock market is extremely overvalued and the current bull market may end soon. Mr. Bauman emigrated to South Africa and earned degrees in both history and economics while attending the University of Cape Town. He took on several managerial roles in the nonprofit sector. He returned to the United States and is currently employed with Banyan Hill Publishing, where he is the editor of three newsletters. He is an expert in low-risk investment strategies and has helped many of his subscribers achieve financial freedom. Today he is urging investors to take caution in the stock market because he feels US stocks are about to enter a bear market.
Small and midsize companies are fading out from the #stockmarket, avoiding the volatility and scrutiny that comes with going public. The shift is leaving large corporations with overblown influence. https://t.co/gLKfgQXaHj
— Ted Bauman Guru (@TedBaumanGuru) November 28, 2018
There are several reasons Ted Bauman feels the US stock market is going to crash. First, he feels that rising interest rates are going to put pressure on US equities. The Federal Reserve has been hawkish in regards to hiking rates and intends to continue to raise interest rates in the near future. Ted Bauman and other economists feel that the US economy can not handle too many more interest rate bikes. They feel that if interest rates go over three percent, then the bull market will come to an end. Many investors will flee the stock market and rush to the bond market. Ted Bauman also feels the trade war between China and the United States could place US stocks in a bear market if the trade war continues. China could punish US multinational corporations that rely on doing business in China. Eventually, many of these companies will see their share prices plummet. To know more about him click here.
Ted Bauman feels there are few things investors can do to position themselves in case US stocks take a nosedive. First, he feels Chinese equities are cheap due to the trade war. The Shanghai Composite has fallen substantially since the start of this year. He feels many Chinese corporations have favorable share valuations compared to many of the overvalued US equities. He also advises investors to be properly weighted in both stocks and bonds. if the stock market crashes, bonds will help protect an investors financial portfolio and provide a residual income stream.