Ed Butowsky, Managing Partner of Chapwood Capital Investment Management, joins Varney & Co. on Fox Business to discuss the latest downgrade by Standard and Poor’s (S&P) of the US debt outlook to negative.
The S&P is questioning America’s future credit rating, could this signal the end of the long running stock market rally?
Ed Butowsky has been in the financial industry for 25 years and believes this by itself may not be a clear indicator; however, these comments make many people in the financial industry uncomfortable.
Stagflation appears to be the top issue in the economy today, and as such if investors were to pull out their money from the stock market and convert to cash or cash equivalents while its trending upwards will impact investors purchasing power. Stagflation is a function of high inflation, low economic movement, and high unemployment. This spells trouble for people holding cash or cash equivalents.
What should investors do in light of these tough economic conditions?
- Evaluate your portfolio for discretionary industries, this area is very volatile.
- Re-evaluate any decisions to convert market positions into cash or cash equivalents.
- Take a look at stocks representing producers like those of food or metals – commodity related stocks.
- Investigate the possibility of investing in opportunities that cover the long and short of the markets – Hedge Funds.
Disclaimer: This information is provided as general information only. It is not intended as professional and/or financial advice nor does any information on this webpage constitute any kind offering of securities. Consult your financial advisor.
A word about Ed Butowsky:
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.
Check out some of our other articles:
- What’s happening in the world of finance?
- How to inflation proof your portfolio
- Why are financial advisors running scared?
Tags: analysis, bond, credit, currency, dollar, downgrade, economy, finance, financial, fox business, futures, government, investment gold, market, negative, outlook, rating, S&P, standard and poors, stock, stocks, trading
