Ken Fisher Explains Whether Supply Chain Shortages Spell Trouble for the Economy

Ken Fisher discusses the potential stock market impact tied to shortages in semiconductors and materials like lumber and steel. Many fear these shortages could drive sustained price increases, leading to strong inflationary pressures that could impede economic growth.
However, Ken Fisher notes that recent materials shortages have a very simple explanation: materials suppliers shut down capacity in anticipation of a slow economic recovery from the COVID-related lockdowns. And since the economic rebound was quicker than most suppliers predicted, these firms were caught operating at low production rates. Consequently, as producers work to increase operating capacity to meet demand in the short-term, they have had to raise prices.
Notably, materials and semiconductor firms are working to build supply to meet current demand, but these production cycles can take longer to recover. Prices may temporarily remain elevated for some goods until production can rise to meet demand.
While higher short-term prices may slow down economic growth, Ken Fisher says it may not be all that bad for stocks. Stocks don’t need gangbusters economic growth to do well, they just need growth. Slower growth isn’t necessarily a bearish sign for stocks. And Ken says it could actually help keep the economy from overheating in the near term.
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.
Connect with us on:
Facebook - https://www.facebook.com/FisherInvestments
Twitter - https://twitter.com/fisherinvest
LinkedIn - https://www.linkedin.com/company/fisher-investments
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 Explains Whether Supply Chain Shortages Spell Trouble for the Economy канала Fisher Investments