Ted Bauman Teaches Us How to Minimize Our Investment Risks With Stocks and Bonds

Worried about a market crash? You should not be! With these tips from Ted Bauman, you should be fully prepared for when the market crashes. Just follow this advice and you will be facing less of a risk when disaster strikes.

The first step, according to Ted Bauman, is creating a wall around your investment portfolio. While that may sound like some sort of fancy language, in reality it is just another way of saying that you need a defensive strategy for investing. There are people who try to make huge gains in a very short amount of time. Many of these people end up losing a lot of money. The correct way to go about investing is to focus on long term gains. Remember that as long as you protect your assets from any significant losses, you will be better off in the long run because your original money will still be there, in addition to any gains that you may have made. View Ted Bauman’s profile on LinkedIn.

Ted Bauman says that you should also consider investing in bonds. Not a lot of people are investing in bonds. Bonds are great investments, as they give you a monthly payoff. However, the real reason to invest in bonds is that they will not turn their backs on you if the stock market crashes. The funny thing is that stocks can lose fifty percent of their value in just a few days or even less. However, when it comes to bonds, they will not lose so much of their value. They are a much safer investment than stocks.

Ted Bauman recommends that you invest in both stocks and bonds. It is always a good idea to diversify your income. Diversifying your income will give you the best chance towards achieving financial stability while creating wealth at the same time. Your stocks will give you the opportunity to experience new growth, while at the same time, your bonds will make sure that you are not going to go underwater if the stock market crashes. Always look for ways to solidify your financial situation by making it more stable. Read more: http://www.talkmarkets.com/contributor/Ted-Bauman