• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Chapwood Investments

Chapwood Investments

  • About
    • About Chapwood
    • About Ed Butowsky
    • Wealth Mismanagement Book
    • Never Go Broke Book
    • Library
  • Approach
    • Our Approach to Investment
    • Client Reporting
    • Research
    • Investment Pantry
    • Virtual Family Office
    • Money Management Process
  • Investment Forensics
    • Toolbox & Process Overview
    • 8 Metrics
    • Chaptimizer
    • ChapVest
    • Chip Score
    • Financial Distress Calculator
    • Investment Reality Check
    • Portfolio Analyzer
    • Portfolio Builder
    • Portfolio Enhancer
    • Risks of Investing
    • Salary/Income Comparison
    • Side-By-Side Calculator
  • Asset Management
  • Media
    • NBC
    • CNBC
    • Fox Business
    • i24 News
    • Fox News
    • ESPN
  • Blog
    • Weekly Investment Video Blog
    • Upcoming Webinars
    • Media Appearances
    • Webinars
    • Managing Money for Athletes
    • Articles
  • Client Portal
    • TD Ameritrade
    • Black Diamond
    • Crystal Capital Partners
  • Contact

Could The Dow Average Hit Over 14,000?

Ed Butowsky, managing director at Chapwood Capital Investment Management LLC, joins Rick Bensignor, managing director and chief market strategist at Dahlman Rose & Co., and Antione Drean, founder of Triago SA, on Taking Stock’s Think Tank panel to talk about the outlook for US stocks.

While equities in the market have been on the rise recently, sending the Dow Jones Industrial Average above 12,000 for the first time since June 2008, analysts are scratching their head as to the true driving forces around these activities. Is it truly stock trading or outside forces? According to the Taking Stock Think Tank there seems to be outside forces causing the equity market to rise.

Is it possible that the stock market has reached an inflection point? Rick Bensignor comments now that we have hit 12,000 on the Dow and almost at 1,300 on the S&P people may use these big numbers as psychological inflection point. Despite the opportunities for the S&P to sell off, it doesn’t and it comes back every day, and in the market place its a little unknown what other forces may be at work here. Ed adds that while there may be outside drivers that cannot be determined, there is certainly market driven activities that are causing the market to show signs of a positive climb. These include such things as quantitative easing by the Fed, more money going into the economy, bond yields are so low, and the only way to build solid efficient portfolios is to build them to include equities. In addition, the beginning of the year is typically when everyone starts to open the 401k belt and allow money to flow back into their accounts. Ed believes that the Dow average is heading upwards in the positive direction and could top 14,000, answering the question, “could the Dow average hit over 14,000”.

As analysts question what forces are at work with the market,  it prudent to be cautious with putting in more money into the market. Rick does not believe so; however, investors need to be cautious at what they are investing in. Ed comments that its relatively difficult these days to identify investments that are not highly correlated (ones that go up together and down together), so there is a resurgence of money being invested in alternative vehicles, private equity, and hedge funds. This will help in building a an efficient portfolio for the long run.

Furthermore, Ed believes that stock prices will go higher in light of where the market was in relation to the liquidity crisis and recession. There may have been some gaps recently but when you look at the track record in a relativistic manner its doing better and will cause stock prices to go higher. In addition to this market being a more global economic market this will certainly help the stock prices of various exchanges go up, whether in Europe, far East or even in the US. Antoine Drean adds that private equity is certainly back in the cross hairs of investors, which has caused the prices to come back too. Antoine explains that even though we are a global economy and many business are established globally money seems to be flowing heavily into emerging markets, but fears that because everyone is trying to do the same type of investments that that may not be the best in the long run.

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.

Primary Sidebar

Browse by category

  • Managing Money for Athletes
  • Articles
  • Media Center
  • Weekly Investment Video Blog
  • Webinars

Recently added

Emerging and Frontier Markets: A Goldmine Awaits You

Debt Ceiling: What it Specifically Means to You

Fixed Income May Be the Key to Making Money in 2023

TSM, QCOM, INTC: The Semiconductor Cold War

Archives

Reach Out

If you’re ready to talk, please take a moment to call or send an email!

Get started

Footer

About

We are not your typical investment firm. We provide expert financial advice to both individuals and businesses.

Read more

Chapwood Investments

4965 Preston Park Boulevard, Suite 100
Plano, TX 75093
(972) 865-2225
Ed@ChapwoodInvestments.com

Connect

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Chapwood Investments, LLC is an SEC Registered Investment Advisory Firm (SEC.gov). No mention, opinion, or omission of a particular security, index, derivative, or other instrument constitutes an opinion on suitability of any security. The information and data on this site, in webcasts, and in videos were obtained from sources deemed reliable. Their accuracy and completeness are not guaranteed. At any given time, principals at Chapwood Investments, LLC may or may not have a financial interest in any or all of the securities or instruments discussed on this site, in webcasts, or in videos. The guests appearing on videos do not receive compensation or provide endorsements or testimonials. Past performance is not indicative of any future results. Copyright © 2023 · All rights reserved.
Disclosure · Privacy Policy · SEC · SIPC · Form CRS