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The bull market in US stocks remains intact, although there have been a few times where it seemed as though it may be coming to an end. The current bull market is one of the longest in history and it is beginning to worry some on Wall Street. One economist Ted Bauman, feels that the stock market may continue to climb higher, but that it could just as easily crash. Mr. Bauman spent much of his career living in South Africa. He worked for many years taking on leadership roles in housing projects aimed at helping those in need. When he returned to the United States, he was hired to be an editor for Banyan Hill Publishing. One of the topics he loves to write about is low-risk investing strategies. He feels that investors who adopt this unique investment style will make more money in the long-run.

Ted Bauman feels that a potential stock market crash in the US could happen really soon and he provides some scenarios of what could cause a crash.One factor that could cause US stocks to fall is that it is one of the most overvalued stock markets in US history. Ted Bauman favors the CAPE ratio to determine if assets are undervalued or overvalued. The ratio is currently as overvalued as the period in the late 1990’s with the crazy speculation in tech stocks. This was also the most overvalued that US stocks had ever been. Mr. Bauman sees a scenario where more and more the financial experts will all start to come to the same conclusion about stocks. Eventually, investors would all begin to dump shares as fast as possible.

According to Bauman, he also feels that the stock market may crash suddenly and jump right back in a short period of time. This took place in October 1987. The stock market had its largest ever percent decline in a single day. With all the programmed trading that takes place today, investors following the same moving averages and indicators would all act in unison, all selling at once and causing a crash. Mr. Bauman reminds investors that those who did not panic back in 1987 actually made money amidst the market turmoil because it did not take long before the stock market bounced back.

It’s been said that all financial innovation is reducible to new ways of packaging, repackaging and selling debt. Similarly, it could be said that all central banking policies may simply amount to new ways of kicking the can of financial reckoning down the road and then selling it to the public as some sort of ingenious solution to an intractable problem.

Shervin Pishevar would probably argue in favor of the latter position. Shervin Pishevar is one of the most influential figures in the world of tech finance. He is the founder and president of Investment company, a venture financing company that has been behind the creation of some of the most important ventures in the technology sector. Companies that Investment company has been instrumental in the creation of include Virgin Hyperloop, Uber and Airbnb. Additionally, Shervin Pishevar himself has been behind the creation of a large number of tech companies, including Social Gaming Network, WebOS and Ionside.

But Shervin Pishevar may be best known for the many insights that he shares with the world via his Twitter feed. With more than 100,000 followers, Shervin Pishevar has the eyes of some of the top thought leaders and influencers in the nation. Therefore, his many opinions often carry serious weight among the technological elite.

Recently, Shervin Pishevar discussed the use and overuse of quantitative easing by the nation’s central bank. The Federal Reserve has embarked on a program of purchasing treasury securities with money created from thin air over the last decade. This program, in conjunction with the lowering of interest rates, has flooded the market with cheap credit. It has also enabled the government to continue running massive deficits.

While quantitative easing has succeeded in spurring on one of the longest bull markets in the history of the stock market, Pishevar warns that it is quickly reaching its limits. Eventually, says Pishevar, even the credit of the United States will be downgraded to junk in the eyes of the world’s bond buyers if they fear that the country will need to sharply devalue its currency in order to make good on its obligations.

https://www.youtube.com/watch?v=geCtCov15g4