Ken Fisher Discusses How Inflation May Impact Holiday Consumer Spending

Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher discusses why he doesn’t believe inflation will have a material impact on holiday consumer spending and the broader economy. Ken points to the fact that bank lending continues to be robust—indicating consumers are actively borrowing and spending. While he acknowledges this increased leverage could have longer-term implications, investors shouldn’t fear a consumption-led recession in the short-term—emphasizing that recessions are more often caused by a decrease in business investment instead of weakening consumption.

Ken also notes how personal consumption expenditures don’t typically fluctuate much from year to year, as it can be very difficult for consumers to make permanent changes to their spending habits. While Ken acknowledges some consumers may be affected by inflation more than others, he thinks the overall impact inflation will have on spending habits this holiday season will be small.


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[cameronlhotka]

It amazes me how good these videos are and how little attention they get

[renegade]

Thank you for another informative video. I love the way you simplify the financial world to make it easier to understand for those of us still learning.

[glendavis]

Right now the economy is doing fine. Peoples worries? So the stock market is where it is due to many investors lack of the economy and investing! Running scared and jacked up emotion.