A potential stock market crash scares investors and makes them vulnerable to making investment decisions to protect their assets. Ted Bauman, Editor of The Bauman Letter Publication offers informative strategies and tips to investors. He said to Gazette Day in May 2018 that the stock market has a 50 percent change to rise and a 50 percent change to decline. In any event, inventors primary concern is protecting their investments with a diversity of investment options, such as stocks, bonds, and mutual funds. Suppose the stock market crashes; an investor can rely on monthly dividends with bonds and quarterly dividends with mutual funds.
It is best to invest in all three options to offset potential losses when stock prices decline and there are losses instead of gains. Ted Bauman said in a letter published that investors should build a profitable investment portfolio by including stocks, bonds, and mutual funds. He writes weekly newsletters for The Sovereign Investor Daily sharing with investors how to protect their assets by creating secured portfolios. The safest investment options are bonds and mutual funds compared to stocks, although all three come with some risks. Bauman calls the strategic defensive, resulting in profitable gains and protection from substantial losses when the stock market is troubled.
He explains how unexpected crashes can happen to cause investors to experience substantial losses. One way is with the rules-based selling of stocks which includes strategies, valuation sell, and opportunity cost sell. While working at the World Bank, Ted Bauman recognized stocks on Wall Street were overvalued and that investors will realize their investments are at higher risks when stock prices revert to lower valuations. Investors tend to use the valuation technique to sell stock when its value is too high, and they use the opportunity cost technique to replace a stock with another stock with fare future value.
Ted Bauman earned bachelor degrees in Economics and History from the University of Cape Town and continued his education earning an MBA from Georgia State University. He’s dedicated years working for non-profits, writing newsletters, authoring a book, and researching housing developments in the Caribbean and Latin America. In 2015, Bauman joined Banyan Hill Publishing as Alpha Stock Alert and editor of the Bauman and Plan B Club.
About Ted Bauman: stocktwits.com/tedbauman