Ken Fisher Explores What President Biden’s Potential Tax Hikes Might Mean for Stocks

In this video, Fisher Investments’ founder and Co-Chief Investment Officer Ken Fisher addresses a very top-of-mind question for investors: What does it mean for stocks if the Biden administration is able to pass sweeping tax changes via reconciliation? Ken says to look at the history of tax hikes and stocks before coming to conclusions.

When you go back through the long history of tax hikes and analyze what stocks have done after those changes, you’ll find that stocks have positive returns on average in the year following tax hikes. Ken Fisher also notes that stocks are positive more often in these periods than they are throughout their recorded history.

Ken believes this happens because tax changes are usually debated, discussed and effectively pre-priced into markets by the time any legislation comes to pass. Stocks are forward looking and often price in potential changes ahead of time. That’s why, Ken says, the debating and uncertainty around taxes often keeps a lid on returns leading up to a potential tax hike, and by the time the bill happens, it’s over and stocks appreciate the increased certainty.

If you would like to learn more of Ken Fisher’s and Fisher Investments’ thoughts on capital markets, visit us at https://www.fisherinvestments.com/en-us.

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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.

Видео Ken Fisher Explores What President Biden’s Potential Tax Hikes Might Mean for Stocks канала Fisher Investments