Ed Butowsky, Managing Partner at Chapwood Capital Investment Management LLC, joins Varney & Co. on Fox Business News to discuss strategies for protecting your portfolio during political instability in the Middle-East.
With the current unrest in the Middle-East and rising oil prices, there has been a lot of concern among investors about the impact that oil prices will have on their portfolio value.
Stocks are valued based on expected earnings, and tend to move up 6 to 9 months ahead of earnings. When we see a shock to the system like weâ€™re currently experiencing with oil prices, corporate earnings will take a hit. From an economic standpoint, some companiesâ€™ earnings will be hurt more than others. Sectors reliant on or affiliated with transportation, for example, can expect to experience a larger negative impact.
I am forecasting stock prices to come down slightly; however, I am not recommending that my clients sell stocks. When the alternative is fixed income, which is going to pay less than one-percent, consider just staying the course.
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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