3 Things You Need to Know This Week | G7 Summit, Monetary Policy, Fraud Prevention (June 16, 2025)

Transcript

Meg Leiken:

Hello, and welcome to 3 Things You Need to Know this Week— our regular series designed to help you sift through the noise across financial media and understand what really matters for markets. Now, here are three things you need to know this week.

First up, the G7 Summit.

This week marks the 51st annual G7 Summit, hosted in Canada. It's a gathering of leaders from seven of the world's largest developed economies, joined by the EU and guest nations. They'll be discussing some pretty weighty global issues like the Russia-Ukraine conflict, the situation in the Middle East, global trade, artificial intelligence and more. But here's the thing about these summits—they rarely lead to immediate, game-changing outcomes for the markets or the economy. This year though, with trade negotiations between the US and several countries ongoing, we may see some trade related announcements come out of this. For example, President Trump and Japan's Prime Minister are set to hold bilateral talks on the sidelines, working on a potential trade deal. While this may sound consequential, we'd caution long term investors from reading too much into it. Even when trade deals are announced, like we've seen between the US and UK or the US and China, many details usually take quite a while to get ironed out. And while that uncertainty may be unsettling, there is some good news. Stocks have had months to process trade concerns, so most of this isn't breaking news for markets. We believe the global economy is still likely to positively surprise this year— especially as global trade realities fall into place— supporting a continued bull market.

Next, monetary policy.

This week, investors will be watching the Federal Reserve and the Bank of England for their latest monetary policy announcements on Wednesday and Thursday. Both are expected to keep interest rates right where they are. But if you've been following the headlines, you may think the stakes couldn't be higher. Some say tariffs and this year's negative volatility have put central bankers in a tough spot. Lower rates to help the economy? Or leave rates higher to help keep tariffs from driving up prices? We think this likely overstates the impact central bankers have on the economy. Central bankers aren't magicians and adjusting rates doesn't guarantee a certain outcome for the economy or for markets. Monetary policy is important, sure, but not the ultimate deal breaker for markets or your portfolio. And we can see this through history—going all the way back to 1970. Rate hikes and cuts alone don't determine market direction. In fact, 12 months after a hike or a cut, you can see the average returns for US stocks are nicely positive. While central bank decisions may make headlines, they're just one of many factors shaping the market and certainly aren't predictive of where stocks are headed next— so, however the Fed and the Bank of England proceed, we'd encourage you to remain disciplined and not let minor moves in monetary policy impact your long-term investment strategy.

Finally, tips to help you protect yourself from financial fraud.

Scammers are getting smarter and sadly, their impact is growing— with artificial intelligence only boosting their reach. Here's the tough part—investors, and often retired investors, can unfortunately be a prime target. Spotting scams is possible if you know what to look for. According to the Federal Trade Commission, here are several warning signs to keep in mind: Scammers often claim they're with a group you recognize, like your bank, the IRS, or the government—reaching out through non-official communication methods—like phone calls, texts, email, social media, online ads, and more. They'll often say there's a problem or you've won a prize. Something that sounds too good to be true, but it comes with strings attached. They may push you to act immediately, making threats or applying pressure so you can't verify their claims, giving you only a little time to think. They may also insist on specific or even strange payment methods like cryptocurrency, gift cards, or wire transfers. So, how can you protect yourself? Always verify unexpected contact and avoid sharing personal information or clicking on suspicious hyperlinks, When presented with any of these situations, resist any pressure to act fast, and if someone demands payment through cryptocurrency or a payment app or gift cards, that's a huge red flag. If something doesn't feel right, Don't hesitate to stop and talk to someone you trust. This can be a financial professional, a family member, a friend, or anyone else you feel comfortable with. Asking for a second opinion could save you a lot of trouble and a lot of heartache. Scammers count on fear and confusion, but with the right precautions, you can keep yourself and your hard earned savings safe. Stay alert and remember, you never have to be alone in protecting what matters.

And that's it for this episode of 3 Things You Need to Know this Week.

For more of our thoughts on markets, check out This Week in Review, released every Friday. You can also visit FisherInvestments.com. Thanks for tuning in, and don't forget to "subscribe!"