Personal Wealth Management / Market Analysis
Fisher Investments' Founder Explains What Slowing Economic Growth Means for Stocks
Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher explains how stocks can continue to thrive amid slowing economic activity. Ken notes that many investors may be concerned about the trajectory of stocks amid the war in Ukraine, rising interest rates, Fed tightening and slowing economic growth. Ken reminds viewers of what truly moves stock prices: the difference between investors’ expectations and reality, specifically over the coming 3 to 30 months. If reality exceeds expectations (i.e., a positive surprise), stocks will likely do well. Conversely, if reality falls short of expectations (i.e., negative surprise), stocks may fall.
Given broadly poor expectations for near-term economic growth, even if the economy continues to slow, Ken reminds viewers that stocks don’t need perfection to move higher. Stocks can still rise so long as their direction exceeds expectations.
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