In today’s ever-changing global economy, fluctuations in currencies can have a significant impact on the stock market. As the value of the dollar decreases, investors may wonder how it will affect their portfolio. To shed some light on this topic, we turn to Ken Fisher, the founder and executive chairman of Fisher Investments. In this blog post, we’ll take a closer look at Fisher’s insights into what the decrease in the value of the dollar means for stocks. So, let’s dive in!
Fisher Investments’ Ken Fisher, on What the Decrease in the Value of the Dollar Means for Stocks
Introduction
As the value of the US dollar experiences a decline, investors are left questioning the impact on their investments. Fisher Investments’ Ken Fisher takes a closer look at this issue and shares his insights on how investors should approach the current situation.
Currency Fluctuations and Stock Prices
Ken Fisher believes that currency fluctuations, including the decline in the US dollar, do not have a significant long-term effect on stocks. Historically, currency movements have not been strongly correlated with stock prices, and even when some correlation exists, it tends to be temporary at best. Nevertheless, currency impacts can be felt in the earnings of multinational corporations that transact business in multiple currencies – and for export-driven companies selling goods overseas, a weaker dollar can have a positive effect on earnings as dollar sales become more valuable when translated into other currencies.
Prioritizing Long-Term Investing Goals ##
Instead of focusing on currency concerns, Ken Fisher argues that investors should prioritize long-term investing goals. By focusing on the underlying fundamentals of a company, such as earnings growth and future prospects, investors can make informed decisions that are less subject to short-term volatility of the market.
Risks Involved in Investing in Securities
It’s important to remember that investing in securities, whether domestic or foreign, carries a degree of risk, including the possibility of losing one’s principal. Contrary to what many people believe, past performance is not a guarantee of future returns. Fisher Investments advises investors to take a careful approach when it comes to investing, and to ensure that their decisions align with their long-term financial goals.
Additional Risks in Foreign Stock Markets ##
Investing in foreign stock markets carries an additional layer of risk, and often these risks can be linked to currency fluctuations. When investing in a foreign market, not only do investors need to be aware of the underlying fundamentals of the company, but they must also be cognizant of the currency fluctuations of the country in which they are investing.
Social Media Presence of Fisher Investments ##
For investors who are interested in Fisher Investments’ insights and research, the company can be found on several social media platforms including Facebook, Twitter, LinkedIn, and Instagram. These platforms can be a source of up-to-date information and access to the company’s services.
Conclusion ##
In conclusion, while the recent decline in the value of the US dollar may concern some investors, Ken Fisher advises that the focus should remain on the underlying fundamentals of companies and the long-term investing goals of investors. By avoiding a reactive approach and focusing on informed decision-making, investors can navigate the market with greater confidence and resilience. However, it is important to remember that investing in securities involves risk, and that investors may also need to be cautious of foreign markets and the added risks they carry. Ultimately, seeking the guidance of professionals may be the best approach for those who seek to build a solid investment portfolio.
