Ted Bauman: How to Prepare a Market Crash

With the recent strong performance of the economy, investors are starting to worry about the economy. They are wondering if the economy can continue being strong. This uncertainty leads investors to make unintended mistakes as they don’t know whether to buy or sell. They wonder if the stocks have attained their intrinsic value so that they can sell, or purchase shares in the hope that they will appreciate. This dilemma is why Ted Bauman has recently given tips on how to protect stocks from a market crash.

Ted Bauman is a financial expert with almost three decades of experience in the financial world. Though currently living in Atlanta, GA, Mr. Bauman was born in Washington, D.C., raised in Maryland, and later immigrated to South Africa as a youth. It was while in South Africa that his stellar career started to take shape. He attended the University of Cape Town and graduated with a degree in economics and history. After returning to the US, he joined Banyan Hill Publishing where he serves as the editor of Alpha Stock Alert and The Bauman Letter.

Ted Bauman advises investors that when there is a huge market crash one should not panic. Sellers are encouraged to retain their stocks and wait for the market to stabilize. For buyers, they are encouraged to take advantage of such a situation and buy at low prices as one is almost guaranteed that the market will recover. A clash is most likely to be followed by an upward leap. To back-up this strategy, Mr. Bauman gives an example of the Black Monday that occurred in October 1987.

Ted Bauman states that well-calculated risk management is another strategy that investors can use. He notes that one should consider investments with low risks. He says that people should not be tempted to achieve huge gains in a short period. If the deal goes sour, the results can be devastating. Mr. Bauman notes that most of the successful investors in stock are people who invested in low-risk ventures. They invested and had to wait for the investments to return good profits.