Ted Bauman – The Second and Third Scenarios

Ted Bauman is one of the Banyan Hill Publishing contributors. Ted has written many articles relating to investment. He has excellent experience in the investment industry making him one of the best investment advisers. He also has incredible skills that managed him to make tremendous success in the investment field. For more of his detailed and comprehensive information of investment, create a subscription to one of his three newsletters in Banyan Hill Publishing. The three newsletters incorporate Plan B Club, The Bauman Letter, and Alpha Stock Alert. In his recent article, Ted wrote about three scenarios that might lead to the crash of the stock market.

The second scenario is the Yield Curve Recognition. As per Ted Bauman, there is a scenario whereby investors are likely to recognize the yield curve from the United States Treasury. He noted that for the fact that long-term rates of interest are relatively low, the primary distinction between the long-term and the short-term interest rates is the modest amount. This is an implication that the markets bond rarely have an expectation of the occurrence of any phenomenal in the nation’s economy for next couple years. Ted Bauman affirmed that S&P 500 has the higher probability of decreasing by over 2 percent just in case a recession occurs and happen to cause a standard effect. As for him, this is likely to occur only after the fourth quarter in case there is a bigger percentage of movement in the House, and impeachment processes happen to follow it.

The third scenario is Crash and Bounce. In this scenario, Ted Bauman noted that the rise will always follow a drop and vice versa. This is the general case if there are no issues with the market or the economy. In Crash and Bounce scenario, there will be an instant drop following rules-based selling. Partial recovery would then follow this. He went on and made a comparison of the possibility in such an occurrence and a similar event that occurred in 1987. This event represented the big ever experienced Doe Jones Industrial Average one day percentage drop in the investment history.