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.
Check out some of our other articles:
- US Stocks Drop For Sixth Straight Week
- Interest Rate Sensitive Bonds Could Be A Problem
- Homeowner Horror
- Stagflation May Be On The Way
Tags: analysts, coca-cola, corporations, debt crisis, Earnings, economy, investors, jobless, market, mcdonald's, procter and gable, rate, stock, tax, wall street
