Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher shares his thoughts on inflation. While rising inflation is painful and can materially affect people’s livelihoods, Ken points out that, historically, inflation acts as a positive force for stock prices in the long term as corporations find ways to adjust their cost structure or pass on prices to consumers. Ken cautions there can be mismatches in the short term—when inflation goes up while stocks go down—like in the first half of 2022.
Moreover, Ken explains that stocks tend to do well in periods of low inflation, as well as in the periods of high inflation—a rare feat for most asset classes. According to Ken, other investment categories tend to do well in just one of the two scenarios. Bonds and cash, for example, do fine in the former scenario, while real estate and precious metals can outperform during high inflationary periods. Finally, Ken points out that in the long term, stocks have higher returns and lower volatility than bonds, which tend to suffer during inflationary periods.
For more of Ken Fisher and Fisher Investments’ thoughts on the markets, visit us at [ Ссылка ].
Connect with Fisher Investments on:
• Facebook - [ Ссылка ]
• Twitter - [ Ссылка ]
• LinkedIn - [ Ссылка ]
You can also follow Ken Fisher here:
• Facebook - [ Ссылка ]
• Twitter - [ Ссылка ]
• LinkedIn - [ Ссылка ]
• Instagram - [ Ссылка ]
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.
