` Silver Lining Is Large Firms

Silver Lining Is Large Firms

on Aug 07, 2011 in Financial Advisor Blog, Media Center by Ed Butowsky | No Comments »


Published August 7th, 2011
Dallas Morning News
By: Ed Butowsky

I cannot remember a time when everyone was so focused on numbers.

Every day the conversation seems to shift from the debt ceiling level to the jobless rate to the manufacturing report to tax rates and so on. These numbers are important, but how they impact the market is even more important.

these issues affect corporate earnings, and that is what drives the market. Stock prices move based on forecasts made by Wall Street analysts who are guided by corporations.

If investors believe earnings will not be reached, stocks will sell off. That is what we have seen recently. but there is a silver lining among all the negativity. The value of the dollar has been dropping, and that makes U.S. exports less expensive and thus more attractive to buyers.

companies that derive the majority of their profit from exports are typically the large multinationals, and they will lead the markets higher. It may not look like it now, but stocks will move higher again.

During this period of market weakness, I suggest buying shares in these large companies that pay dividends. the economy is in horrible shape, but investors must see through that. Companies like Coca-cola Co., Procter & Gamble Co. and McDonalds’s Corp. ultimately will recover, and savvy investors know that.

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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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 »

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