Ted Bauman Explains Trends In the Stock Market

Ted Bauman says that the best way to approach the stock market is to make sure that you understand simple trends. He says that one trend that you should know is the stock market crashing followed by a huge upswing. This happens after sellers sell stocks because they are overpriced. However, after that happens and the stocks start to crash, many people will start buying stocks. These will usually be experienced investors who will want to buy stocks at a bargain. When they start doing that, the stock market will often go up, leading to an upswing. If there is a large crash that is caused by rules based selling, you may want to consider simply buying a few stocks at a bargain. Do not put all of your investments into that, because the stock market may continue going down, but put in enough money so that you do not risk too much while allowing yourself to make some nice gains if the market does get bullish once again. View Ted Bauman’s profile on LinkedIn

Ted Bauman also recommends that you approach everything with a balanced viewpoint. He says that many people buy stocks that are overvalued. Today, with software that can help calculate your earnings ratios, people may find that their investments are overpriced, leading them to sell their stocks, which will cause many stocks to go down in value.

Finally, says Ted Bauman, you can hope for an increase in interest rates in the long term. The Fed will probably raise the interest rate at least once during the coming future. It is going to be very hard to time the market, however. A drop in the S&P can easily cause a recession in the economy. It is important to take the proper risk management strategies so that you have a better chance of staying safe if something goes wrong and the stock market crashes.

Ted Bauman recommends that you consider investing in both bonds and stocks. While stocks will give you an opportunity for better gains if the market goes bullish, the bonds will help keep you afloat if the market crashes, as they will not lose as much of their value as stocks will.

Learn more: http://sovereignsociety.com/bauman-letter-reports/