Ed Butowsky, managing director at Chapwood Capital Investment Management LLC, joins as special guest on Varney & Co. to discuss how the stock market is doing well despite all the negative news.
Despite the barage of bad news circulating Ed explains that profits drive the market. Furthermore, with corporate earnings increasing because of globalization, Ed expects the Dow to hit 14,000 in the next 12-18 months. Much of the positive increase in the market levels can also be attributed to adjustments of corporate earnings to having more clarity in the months ahead.
Ultimately companies are making money outside the United States and profiting from it. If the economy continues to have issues with inflation and commodity related problems, we will have issues with other countries buying our products, which will hurt our stock market in more than one way. Ed explains that so long as the Fed continues to print money the way investors can overcome is to buy up equities. Ed states that the stock market, based on projected earnings, is right now 12% under valued, and it is this number that investors need to pay attention and not the fact that we have hit over 12,000 in recent days.
Ed Butowsky is the managing partner of Chapwood Investment Management and is an internationally recognized expert in the investment wealth management industry. Ed is also a frequent guest on other networks such as CNN, NBC, ABC, Fox News, Fox Business, and Bloomberg to name a few.
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Tags: commodities, dow, equities, futures, gold, nasdaq, S&P, silver, stock market, stocks
