Tag Archives: INVESTMENT

Ted Bauman Gives Scenarios of A Market Crash

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.

Average Ratio

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.

Fortress Investment Group Has Recently Added A New Milestone:

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.