Ken Fisher Discusses Inflation Interest Rates and Supply Chain Challenges

Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher discusses how rising inflation, interest rates, and supply chain disruptions could affect stocks this year. According to Ken, recent elevated inflation numbers are largely due to supply chain bottlenecks across the industrial spectrum resulting from lockdown restrictions. Capacity in most categories, however, is gradually returning to normal levels as COVID restrictions ease. Ken believes markets will pre-price supply chain improvements. He also thinks the effects of inflation and related short- and long-term interest movements should be lower than most investors fear.

While many investors expect high inflation rates to continue, Ken says it pays to think like a contrarian—if everyone is talking about it, the market has likely already priced it in.