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-gb. Connect with us on: Facebook - / fisherinvestmentsuk Twitter - / fisherinvestuk LinkedIn - / fisher-investments-uk This commentary constitutes the general views of Fisher Investments UK and Fisher Investments, and should not be regarded as personalised investment or tax advice or as a representation of their performance or that of their clients. No assurances are made that they will continue to hold these views, which may change at any time based on new information, analysis or reconsideration. In addition, no assurances are made regarding the accuracy of any forecast made herein. Not all past forecasts have been, nor future forecasts may be, as accurate as any contained herein. Fisher Investments Europe Limited, trading as Fisher Investments UK, is authorised and regulated by the UK Financial Conduct Authority (FCA Number 191609) and is registered in England (Company Number 3850593). Fisher Investments Europe Limited Headquarters: Level 18, One Canada Square, Canary Wharf, London, E14 5AX Fisher Investments Europe Limited’s parent company, Fisher Asset Management, LLC, trading under the name Fisher Investments, is established in the USA and regulated by the US Securities and Exchange Commission. Investment management services are provided by Fisher Investments. Investing in financial markets involves the risk of loss and there is no guarantee that all or any capital invested will be repaid. Past performance neither guarantees nor reliably indicates future performance. The value of investments and the income from them will fluctuate with world financial markets and international currency exchange rates.
