Fisher Investments’ Ken Fisher, Answers Your Questions on Retirees’ Asset Allocation, the Fed & More

Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher answers viewer mailbag questions about retiree’s asset allocation, Federal Reserve policy and why the yield curve is different this time. Ken believes a retiree’s asset allocation should be determined by their individual financial circumstances and investment time horizon. According to Ken, investors with long time horizons should invest mostly in stocks. However, as one’s time horizon shortens—due to age or other circumstances—he believes reducing stock exposure to mitigate short-term volatility may be appropriate.

Next, Ken discusses the Federal Reserve’s impact on markets. Ken believes central bankers are mostly reactive to current economic conditions. Ken believes this reactivity leads to inconsistent messaging, which increases investor uncertainty and market volatility. However, Ken doesn’t expect Fed rate hikes to “kneecap” the economy since bank lending and credit creation remains healthy. Historically, a deeply inverted yield curve—notably, the difference between short and long rates—was a reliable sign of impending recession because it generally reduced bank profit margins and loan activity. However, Ken thinks the yield curve isn’t a useful proxy for bank’s willingness to lend currently—noting that bank lending has remained robust despite a rapid rise in short-term interest rates.

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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.

[bryanvo]

Thank you for sharing your wisdoms, Mr. Fisher! I watched all of your videos posted in the last 2 years, read 3 of your books and learned a lot. Please keep up the great work.

[windranian]

sincerely thank you for sharing your thoughts with us

[napoleonmdusa]

Informative presentation, especially at this time.

[billclarke]

I LOVE THIS FORMAT! Terrific Ken - thank you.

[hexpulsientcrypto]

Ken, not sure where to ask a question read on air, but my question is what are your thoughts on target date funds? Do you think they provide a good long term return if averaging into them every 2 weeks to reach long term financial goals since buying at multiple levels through a long enough time horizon?

[alexgamble]

Lending growth is an interesting point. It will be interesting to see if the SVB/other melt downs with impact lending growth? Comentators declaring the crisis is equivalant to rate hikes. I guess it would make sense banks will be more conservative. Latest rate hike and more might look very silly in a few months time.

[gmo]

Why dont we prevent this situation up front instead of waiting for history to repeat itself and being reactive. Why did we get in that SVB situation? Who helped cause it? Was it easing up rules n regs? Shld we make banks more boring? Need rules set and applied.

[sociolocomtsac]

I have to make payroll and I keep my money in the bank. $250k goes quickly with wages so high, and I can't have 14 different bank accounts. If depositors were not made whole, more bank runs would have happened under the circumstance. No bank can survive a bank run. Bank runs are the problem and what they did stopped the worst of it.

[Swampdog]

Thanks for your videos! I listen as many as time will allow! Don't worry about any negatives about waving hands if you didn't there would be critics for that, too! Keep up the great work and looking forward to your next video! Thanks!

[DonDee]

Great questions and even better answers 👍

[johnBSadro]

This guy is unusually intelligent. Pity that what he says is waisted on most people. Intelligent people are more isolated than stupid ones.

[markjr.]

Unsnarfelling of the supply chain! Hah

[marilynbennett]

I would like to have you discuss the current problems with the banks.