` 2 Ed Butowsky: Why Stocks Are Doing Well But Americans Are Not

Ed Butowsky: Why Stocks Are Doing Well But Americans Are Not

on Sep 26, 2010 in Fox News, FrontPage, Media Center by Ed Butowsky | No Comments »

Ed Butowsky, Managing Partner of Chapwood Investments Management, joins America’s News HQ on Fox News to discuss the impact of Wall Street rallying to a strong finish to the month of September, but Americans are still suffering with unemployment.

Ed Butowsky explains that the most important indicator to the stock market movement is corporate earnings. These indicators are helping investors forecast out 6-9 months in advance. As we are seeing strong numbers in September, hopefully this will yield an upward momentum in the market. However, as Ed Butowsky quickly points out, that regardless of strong market conditions this is not directly helping unemployment. Ed believes that unemployment numbers could in fact go slightly higher in the near future, and if it does it could negatively impact earnings which will impact the strong market conditions that we are seeing now.

Ed Butowsky further elaborates that the market is not influenced by individual investors like us, but rather by institutional investors. These investors are making their mark on the equity market by heavily investing in it versus the bond market. Thus far the market is doing well and should continue through the end of the year states Ed.

Ultimately, Ed exclaims that we need to do something about this unemployment number otherwise this unemployment can impact future earnings for companies which will bring down the Dow. Ed offers up a possible explanation for the market rally in September. There has been a lot of discussion around extending tax cuts expiring in January, and unemployment could potentially go down if those tax cuts are in place for the new year.

Facts About September Market Rally:

  • Dow on track for best September since 1939
  • Dow improved 8% this month
  • Dow has climbed up every week in September
  • Historically, September has been the worst month for the Dow


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About Ed

Ed Butowsky is a nationally-recognized expert in investment management. Butowsky has been in the financial services industry for over 25 years. He was previously a Senior Vice President at Morgan Stanley and a Managing Director ... More »


Ed Butowsky, Managing Partner
Chapwood Capital Investment Management, LLC
Website: www.chapwoodinvestments.com
Email: ed@chapwoodinvestments.com
Phone: (972) 865-2225