Showing posts tagged inflation

Americans Feel Worst Is Yet To Come On Economy | Ed butowsky (by Ed Butowsky)

Recent M3 data prove that the money supply is growing at a very rapid rate, and this is a leading indicator of inflation.

Inflation Numbers Flat For Second Straight Month

In the month of July gas prices crept up an average of $0.31 per gallon. Gas in general is a major component that runs through the blood stream of the American economy. As gas prices go up it causes a ripple affect across the economy in goods and services that rise proportionately. While we all know the affect of gas prices on what we buy and do everyday, the government has stated in recent reports that there is no inflation at the consumer level. It is certainly clear that not to be the case. Ed Butowsky, wealth manager, financial advisor, and managing partner of Chapwood Investment Management, joins Fox Business’ Varney & Company to debate the fact that the Consumer Price Index (CPI) that the Government reports is incorrect and the Ed’s Chapwood Index proves to be much more realistic in terms of reporting the REAL cost of living increase.


Check out our Chapwood Index Poll, and share it with your friends, family, coworkers, etc…

How do you feel the results of the upcoming election might effect your personal cost of living over the next four years? (polls)

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.
 
Original Article

Making Money In Manic Markets

Avoiding Bond Funds

During uncertain economic times, investors typically rush toward U.S. bond funds.

When stock markets are falling, investing in bond funds seems like the safe and wise decision. But prudent investors should hold to a long term perspective.

In the short run, anything can happen, but I am virtually certain that my long-term prediction about inflation will prove correct. As I wrote four weeks ago and as we saw this week, six central banks are beginning to print money to inflate the European economies and save their banking system.

This is a risky strategy, and on thing is certain - printing money will create tremendous inflationary pressures around the world.

As inflation ignites, interest rates will rise and the value of bond funds could drop 10 percent to 15 percent. The exact timing for this is difficult to predict, by my advice for investors is to avoid bond funds.

Those who prefer no risk should defer to a money market in the short run. For long-term investors - as we all should be - I recommend buying both large company stocks that pay dividends and also utility stocks. I like Procter & Gamble Co. and McDonald’s Corp. For utilities, consider the Utilities Select Sector SPDR and Dominion Resources Inc.

Preparing For Inflation

We focus quite a bit in this country on the amount of money the government is printing to artificially stimulate and support our economy.

This is a potentially devastating practice, and one that will soon trigger rising inflation. Undoubtedly, Europe will also have to engage in the same kind of artificial money creation to prop up its sluggish economy.

Investors should be forewarned that rising inflation will affect their cost of living and erode the value of their portfolios. With so much excess money sloshing around, I believe we will see dramatic inflationary and cost-of-living spikes in 2012.

To counter this, savvy investors should own stocks, not bonds. Bonds will be particularly vulnerable in a rising interest rate environment. I would suggest that investors focus on commodity and energy-related stocks. Two of my favorites in these categories are Market Vectors Agribusiness and iShares Dow Jones U.S. Energy.

Ed Butowsky is the managing partner of Chapwood Investment Management and is an internationally recognized expert in the investment wealth management industry for over 22 years. Check out Ed’s discussion topics for a quick tip or two for your own financial well-being in his Media Center or follow Ed Butowsky on Facebook.

Consumer Prices Jumped In September From Year Before

The Consumer Price Index, the key measure of inflation, jumped 3.9% in September from the year before. This means that inflation is running at the consumer level at a 3.9% annual rate. However, are the inflation performance numbers correct? Ed Butowsky, managing partner of Chapwood Investment Management, joins Fox Business’ Varney & Co. to discuss the reality of these numbers.

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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The Fed Did Not Announce Any New Policy Changes

The stock market on Friday was in a sell off mode as Ben Bernanke affirmed that the Fed was not making any new policy changes. Is this good or bad? Will the fed print more money to help artificially stimulate the economy? Ed Butowsky, managing partner of Chapwood Investment Management, joins Fox Business' Varney & Co. to examine the impact of the Fed's decision as well as the potential for the fed to print more money.

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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Stock Market Plunge

Stocks and more than likely your retirement account got slammed from all sides on Thursday. Inflation up, consumer price up, jobless claims up, construction down, and home sales down. There is not much good news going around. One analyst said that if we are not in a recession it sure does feel like one and that is just as bad as it gets. On Thursday the Dow lost 400+ points, while the NASDAQ lost 130+ and S&P lost 50+ points. Ed Butowsky joins Fox 4 News to try to examine what happened on Thursday and how this sell off is the same or different than others.

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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