Ted Bauman: The Liklihood Of US Stocks Crashing

Economist Ted Bauman has been bearish on the US stock market recently and he feels there is a growing potential for a stock market crash. He has many years of experience in low-risk investment strategies and asset protection. He emigrated to South Africa and attended the University of Cape Town, where he would earn his economics and history degrees. After living abroad for over twenty years, he returned to the United States and is currently employed with Banyan Hill Publishing, where he provides his subscribers with three newsletters that give practical financial advice. Ted Bauman believes a stock market crash is coming and gives an area he feels will be profitable to investors.

Ted Bauman believes there are several catalysts that could trigger a stock market crash here in the US. First, he feels the US stock market is extremely overvalued. He used the CAPE ratio to measure the US stock indices and the ratio gave a thirty-two reading. The only other time the ratio was higher was during the dot.com bubble in the late 1990s. He feels that stocks will begin to revert to the mean once more investors begin to worry about how overvalued the stock market is. Ted Bauman is also worried that the trade war is going to hurt the US stock market. The US and China have not come to terms regarding trade. Mr. Bauman feels that if the trade war continues to drag on, the Chinese will eventually punish US multinational corporations. These companies combined could lose billions in revenue, which would eventually mean their share prices would trade lower.

Ted Bauman does see value in Chinese equities. After the trade war rhetoric really heated up, the Chinese yuan began to drop in value. Eventually, the Chinese shares began to lose value as well. The Shanghai Composite is down over twenty percent for the year. Many of the largest companies in China are selling at bargain prices not seen since the end of the 2008 financial crisis. Mr. Bauman feels that it may be wise to rotate some overvalued US stocks for cheap Chinese shares.

Learn More: stocktwits.com/tedbauman

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