Fisher Investments - This Week In Review (Dec. 6, 2024)

Transcript

Jessica Smith:

Hello, and welcome to Fisher Investments’ This Week in Review. The economy and markets can feel dizzying and ever changing. That’s where we can help. This weekly segment is designed to highlight a few things you may have missed this week, what they mean for financial markets and, most importantly, investors.

Now, let’s review what happened this week.

First, political developments in South Korea and France

Big political news hit both countries this week—on Tuesday, South Korea's president declared martial law, but then lifted the order early Wednesday after the South Korean parliament voted against it. Meanwhile, in France, the government lost a no-confidence vote on Wednesday, ushering in fresh uncertainty over what happens next. When there’s political turmoil like this, it can be unsettling and weigh on investor sentiment. The good news? Uncertainty doesn’t last forever. Eventually, things settle, investors adjust, and markets move forward. Globally, these short-term political shifts aren’t likely to have a big market impact for investors over the long term.

Next up, OPEC+ and oil prices.

On Thursday, OPEC and other large oil producing countries—sometimes known as OPEC-plus—met to discuss their plans for oil production. These meetings can sometimes influence oil prices, but OPEC-plus has less sway than it used to before the U.S. shale oil boom.  Oil prices have been bouncing around, with geopolitical conflict in the Middle East adding to the volatility. Despite this, global oil prices are still close to where they were at the start of this year and even at the end of 2021—around $75 per barrel. Looking ahead, we think a resilient economy and slower growth in U.S. oil production could help push prices a bit higher and support Energy stocks.

Finally, a look at US jobs.

On Friday, the latest U.S. jobs report came out, showing stronger hiring in November after a weaker October. In our view, it’s important for long-term investors to not get caught up in one month’s numbers, as they can be skewed by temporary factors. The bigger picture? Job growth is slowing compared to 2021 and 2022. We think this is more of a return to normal, pre-pandemic trends—not a signal of a looming recession. Unemployment ticked up earlier this year, but that was largely because more people were looking for work—not because of significant layoffs. For all the attention jobs reports get, remember, stocks tend to look ahead, not backward. These numbers reflect where the economy has been, not necessarily where it’s going.

And that’s This Week in Review. To learn more about what we’re watching each week, check out our other series, Three Things You Need to Know This Week, released each Monday. You can also visit FisherInvestments.com for more insights.  Thanks for joining us, and don’t forget to subscribe!