Investment expert Ted Bauman explained the possible scenarios of a stock market crash. While the current market trends may continue, they could also plummet. Bauman has both experience and success, making his investment advice valuable.
The U.S. stock markets are overloaded. Ted Bauman uses the CAPE ratio, which is the adjustment of price to earnings ratio made by Robert Shiller. A ten year period is used to compare stock prices and corporate earnings. The CAPE of S&P 500 is now at 32, which is close to the historical high.A drop of over 35 percent would occur if the market goes back to the normal 17 ratio. It would take over a year for this drop to happen and there could be two distinct effects. The first is investors would realize those future dividends would not yield a return on investment. Investors would instead search for profits which would. The appeal of returns on alternative assets would increase. Ted Bauman pointed out that Congress recently locked in one of the largest budget deficits in history.
Recognition of Yield Curve
Another scenario is the recognition of the U.S. Treasury having a yield curve. There is a small difference between short-term yields and long-term interest rates since they are staying low. According to Bauman, bond experts do not expect anything extraordinary to happen with the economy.
Crash and Bounce
A drop could be followed by a rise. The market and the economy had nothing wrong with them would make this possible. Rules-based selling would be followed by a quick drop, then partial recovery. In late 1987, a similar incident occurred, and Ted Bauman believes it is possible it could happen again.
Bauman’s Tips to Protect Investments
Bauman recommends that investors do not panic, and focus on both reducing risk and diversification of assets. Stocks with low volatility should be sought out, and the aid of an expert will help.Ted Bauman has a long history of success in the stock market and experience with the best investment strategies he shares with the average person.
As one of the world’s largest and most successful alternative asset management firms, Fortress Investment Group has developed a reputation in financial industry that could accurately be described as legendary. The firm was founded back in 1998. Its three co-founders are Wes Edens, Rob Kauffman and Randal Nardone. Today, Fortress Investment Group has offices located across the globe in critical financial markets and has been a publically traded company since the 2007 calendar year. Fortress Investment Group has had many seminal moments throughout its existence and there have been many significant accomplishments and milestones, but perhaps the biggest one came recently when the company was acquired by the Japanese company SoftBank.
When SoftBank and Fortress Investment Group announced the massive news that the Japanese firm would be taking over the investment management giant, the financial world was excited to see what would happen next. One thing is certain, the public face of Fortress will remain the core of Wes Edens, Randal Nardone and Peter Briger as the company’s heads will continue to run their world renowned financial operation in an as usual manner. There will be certain regulations in place that prevent SoftBank from taking a more hands-on approach, but at the end of the day, the business arrangement suits officials from both companies quite well.
The reasons that SoftBank wanted to acquire a firm with the financial industry clout that Fortress Investment Group has are numerous. One reason that particularly stands out is the fact that SoftBank had wanted to enter into the investment management sector for some time. Being able to acquire Fortress was huge for SoftBank in this regard because it is such an easy way for SoftBank to get into this business by acquiring a firm that already has the entire package accounted for. Fortress gains the benefit of having the Japanese giant behind them. It is a win, win for everyone involved.
The Transport and Infrastructure division at Fortress has been one of the most active in recent years. This was clear to all observers when Wes Edens the current CEO of the private equity division launched the new Miami-Fort Lauderdale route for Brightline. The private passenger railroad operator was increasing its presence in the area having established other similar routes earlier. This means that the commute is reduced to a 35-minute rider in trains that offer free WIFI, leather seats, charging ports and wide Isles. This for Wes Edens was another dream come true for the group. They had envisioned this for a long time, and their investment was paying off. Wes Edens speaks passionately about investments in the transport and infrastructure area. He is fully aware of the potential competition, but is also confident that the company has put in place some of the best infrastructures to support any investment they make. Brightline found an American company to make the passenger trains. This would guarantee that the quality of the trains would be excellent and at the same time would not compromise on comfort and speed. The train will move at more than 90 miles an hour which is fast enough for a distance considered too short to fly yet too long to drive. All this will cost only 10 dollars considered a steal given the comparable cost of an Uber over the same distance not even considering the extra hour that would be spent on the road at peak hours.
Wes Edens was one of the founding members of the Fortress Investment Company and has been with the group since then. The group will be hitting twenty this year as a private company following its acquisition by SoftBank. This, however, is something Edens considers a positive development as they are now able to make more decisions independently without the need to consult shareholders. The acquisition also comes with extra cash for investment and its one of the reasons which make Wes Edens see the deal as a win-win situation for Fortress and SoftBank. He, however, remains in the management team even after the acquisition.
After completing his Bachelor of Arts at Princeton University, Peter Briger would begin working for Goldman Sachs. At the time he was not sure how far his career in finance would take him, but he was determined to make the best out of it. He began ascending the ranks in the bank, and by 1996 he was made partner. This meant that Briger was doing something right at Goldman and he would continue to ascend through the various levels as the years went by. During this time a lot was happening, and the need for private equity firms was rising. Seizing the opportunity three investors who all had a background in finance came together and began Fortress Investment Group.
This group was founded in 1998 and at the time it had about four hundred million in assets under its direct management. Over the next five years, Fortress Investment Group would experience exponential growth, managing to bring its total assets under management to about 3 billion dollars. This was a turning point for the group as they quickly realized that there was a need to bring in more talent and experienced managers who would take Fortress to the next level. At this point, Peter Briger was brought in, and he joined the management team. His work at fortress would become immediately noticeable, and by 2006 he had joined the board of directors.
This would mark a turning in his career. The following year, Fortress made a decision to list on the NYSE to be able to raise more capital while at the same time give more investors the opportunity to experience the Return on Investment the private investors were experiencing. Peter Briger would face one of his toughest tests at fortress during this time as he was tasked with overseeing the same even as his former employer Goldman Sachs provided liquidity for the same. The listing went on smoothly and the value of Fortress Investment Group or FIG as it was now listed skyrocketed. Following the success of this event, Peter Briger would be made Co-chairman of the group a move that saw him consolidate his role within the organization.
Chief Financial Officer for Willis Towers Watson is a high-profile position with a lot of expectation. But, Mike Burwell has the required experience and credentials to fit the bill. Depending on subjective experience and personal point of view, some professional individuals have no problem agreeing that Willis Towers Watson is getting the better part of the businessman. And, who would blame them for valuing all the experience. But, it is a good idea all around to take a look at his past and have a peek at the man in the present to get the best idea.
Once upon a time before Michael Burwell’s status with his current company, there is a period in history where he serves under the name of Princewaterhouse Coopers LLP. This turns out to be no passing fancy, and it runs for more than three decades. During that time, his service affords him positions in the assurance business providing advisory services and eventually leads the doors of Chief Financial Officer along with Chief Operating Officer. In between, there are things like chairman, partner, leader, department head, and such to test his resolve. His degree is a bachelor’s in business administration from Michigan State University. He is a certified public accountant, in addition to all his other credentials.
But on the other hand, Michael Burwell does many ordinary everyday things just like many people do. For example, he starts his day by making the bed and getting a little exercise before having the day’s deep thoughts. With a thought-provoking can-do mindset, Mike Burwell is ready to take charge of the people within his organization. This is by no means a bossing them up, but more of a serving and catering to their needs to yield the highest productive returns from his most valuable team. This entails and overall encouragement to do more with less. And to these ends, he lives by the advances in technology and maximizes where they can be applied in business. Visit This Page for additional information.
So, he likes to stay abreast of any types of new and cutting-edge changes in the tech market or businesses world worth keeping an eye on. This mind-strengthening exercise just might be the reason why he can see connections that other people appear unable to catch hold. The new way of the future? Micro communities and how people connect through advertisement and products is the next big thing that no one pays attention to right now, according to Burwell.