Ken Fisher, the billionaire founder and co-CIO of Fisher Investments, has shared his optimistic outlook for the stock market in 2024. In a recent video to his firm’s clients, Fisher expressed his belief that the market can continue to rise without the need for Federal Reserve interest rate cuts.
Fisher pointed out that the market’s strong performance in 2023, with the S&P 500 rising over 20% after hitting a low in October 2022, occurred without any interest rate cuts. He emphasized that interest rate cuts may not have as significant of an impact on the overall economy and stock market as many people think.
Despite the market’s anticipation of rate cuts, Fisher remains one of the most bullish forecasters on Wall Street. He has previously stated that the S&P 500 could see modest double-digit gains in 2024.
Fisher also highlighted that despite higher interest rates, the GDP has actually accelerated over the last two quarters, indicating that interest rates are just one mechanism in a much larger system. He suggested that investors may have already factored in the potential impact of future Fed rate cuts, as these policy moves are widely discussed.
While Federal Reserve Chair Jerome Powell has hinted at the possibility of easing monetary policy in 2024, Fisher’s comments suggest that the market may not be as reliant on rate cuts as previously assumed. Analysts have also suggested that the current bull market may only be halfway through its potential, indicating that the market may have more room to grow, with or without rate cuts.
Overall, Fisher’s positive outlook for the stock market in 2024 aligns with the record-breaking rally that has been witnessed so far this year. Despite concerns over inflation and the potential impact of the Fed’s interest rate decisions, many analysts believe that the bull market could continue for several more years.
In conclusion, Fisher’s perspective serves as a reminder that the stock market is influenced by a multitude of factors, and that investors should consider a holistic view of the market when making investment decisions. Despite the uncertainty surrounding interest rates and monetary policy, Fisher’s confidence in a good-to-great 2024 provides hope for investors looking to capitalize on the market’s potential growth.
