Ed Butowsky, managing partner at Chapwood Capital Investment Management LLC, joins the Tom Sullivan show to discuss where to invest your money and what investments to stay away from.
People always ask Ed and others not only about how to invest their money but also about various investment products and choices that you have to choose from. In this segment Ed addresses these questions.
Should you invest in stocks, is now the time to get in, or get out?
Even though the market may look jittery and volatile more often than not, its certainly the place to invest your money. However, Ed caveats that he would not put any new money to work just yet. The market is entering the earnings season, and when the earnings season occurs stocks have already moved up 6-9 months ahead of economic data. While most of the earnings will probably fall in line with expectation it is the rhetoric that follows with the forecast of future earnings that will foreshadow a pull back in the market. Such comments could include discussion about high energy costs and these costs having an impact on future earnings.
In light of Ed’s comment to wait, what do people do in the meantime, do they dollar cost average their investment or wait for some event and then invest? Ed explains that you should really only dollar cost average if you believe the market is going to fluctuate in short periods of time. However, this period of time its not wise to average in your investment amidst a market correction ahead of the upcoming earnings season.
What would you buy individual stocks, mutual funds or exchange traded funds?
Ed explains that exchange traded funds (ETFs) are the best vehicle out there for the price. Mutual funds tend to be more costly because of their fees. Exchange traded funds have lower fees, they follow the indexes, and they are more passive investment than a mutual fund.
If I put my money in the market how long do I need to commit?
If you have more than two years to commit to the investment the stock market is a good vehicle to pursue; however, if you need the money in a year or less like buying a home, the stock market is too volatile. You should invest in options that are more liquid and can stand the fluctuation of the market or any other geopolitical event around the corner.
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.
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- How to inflation proof your portfolio
- Why are financial advisors running scared?
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