Fisher Investments’ Ken Fisher Debunks ”Don’t Fight the Fed”

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Fisher Investments’ Ken Fisher Debunks ”Don’t Fight the Fed”

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Жыл бұрын

Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher debunks the common myth that investors should not ‘Fight the Fed’. The theory suggests investors should avoid investing in stocks when the Federal Reserve (“Fed”) hikes short-term interest rates and invest when the Fed is loosening rates. However, as Ken wrote in his book Debunkery, Fed rate adjustments tend to have little long-term effect on capital markets.
While rate hikes may cause short-term downward volatility, Ken says the long term impacts on stock prices are largely unaffected by Fed decisions about rates. Ken explains how interest rate adjustments don’t tighten or loosen the amount of money available for lending, they change the price of that money. With history showing rising and falling stock prices regardless of the interest rate environment, Ken recommends putting little weight behind any Fed decisions and to stay disciplined to a long-term investment strategy.
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Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. The foregoing constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice. Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice.

Пікірлер: 12

@EthosLegos Жыл бұрын

Thank you for the video and debunking. This is not taught at my business school.

@jimmeyer9648 Жыл бұрын

Thank you Mr. Fisher

@johnmorris9123 Жыл бұрын

From Part 3 of "Everyone Knows" in Debunkery Bunk #28, Ken is always astute and cogent in his comments.

@greghanna7753 Жыл бұрын

Debunkery helps keep my head straight.

@darrenhere5856 Жыл бұрын

enjoying the book now...

@ryantinney Жыл бұрын

It seems scarier without the fireplace in the background.

@heinerlauter1211 Жыл бұрын

Interesting

@gmo709 Жыл бұрын

Did a quick calc on barchart. SP500 up 16.6% since Oct 12 2022. Not bad. Now you spoke ab rate hikes vs rtns but how about higher int rates vs lower int rates, say 3 to 5% diff over much longer periods? Was always taught higher int rates are gravity on stock rtns. That may be one for mailbag? If not, that is fine.

@gmo709 Жыл бұрын

History repeats itself. So if the rate hikes dont really help tighten money supply and it doesnt help much w inflation, why does the Fed do it? What would be the benefit or positives? Also, how much impact does corporate concentration and lack of true competition have on inflation? I learned ab the law of supply and demand in my econ class decades ago, but that was based on...competition. What do we do ab corps using inflation as a cover as they rake in record profits.