Tag: inflation

Exclusive Interview with Ken Fisher about the Stock Market Under Trump versus Biden

by Fred Fuld III

The following informative interview was provided by Kenneth L. Fisher, founder and chairman of the money management firm Fisher Investments, who had the longest continuous running column in Forbes Magazine. He is a billionaire on the Forbes 400 list and author of numerous investment related books.

According to Investment Advisor magazine, he is one of the 30 most influential people in the investment advisory business over the last 30 years. Fisher is considered to be the largest wealth manager in the United States.

We cover a lot in this interview, including:

  • The stock market under President Donald Trump versus former Vice President Joe Biden
  • The influence of corporate tax rate on the stocks 
  • The potential of the reversal of Trump’s tax bill on Day One if Joe Biden & Kamila Harris win the election
  • The market under Republicans versus Democrats
  • Whether inflation is on the horizon
  • The petroleum industry
  • Gross Output, GDP, and the economy versus the stock market
  • Are stock ratios dead? (PE, PS, PEG)
  • And much, much more

Two Timeless Books Mentioned by Ken Fisher in the Interview

The Only Three Questions That Still Count: Investing By Knowing What Others Don’t (A great companion to the  Beat the Crowd: How You Can Out-Invest the Herd by Thinking Differently book, which I enjoyed reading.)

Wall Street Waltz

(My favorite of all his books is The Ten Roads to Riches: The Ways the Wealthy Got There (And How You Can Too!) Second Edition,  because it is so different from all the other financial publications. It basically tells you ten ways, with all the steps, to get really rich, including “marrying a billionaire.” Lot’s of insight and lots of humor. You can find more info about this book on a previous podcast: Interview with Billionaire Ken Fisher about the 10 Roads to Riches.)

The Interview

Enjoy listening to the great insights and  information that Ken Fisher provides.

To stream the interview, click:

HERE

You can also download the interview as an mp3 by right-clicking here and choosing “save as.”

Enjoy the interview and Happy Investing!

All opinions are those of Ken Fisher, and do not represent the opinions of this site or the interviewer. Neither this site, nor the interviewer, nor the interviewee are rendering tax, legal, or investment advice in this interview.

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My Concerns About the Coronavirus

by Fred Fuld III

Your email account has probably been pelted with COVID-19 letters from every company you have ever done business with, or for that matter, every company you have ever interacted with. They all say the same thing, “extraordinary times,” “crazy times,” “historic challenges,” “our commitment to you,” etc. Plus they all tell you to wash your hands. I think we all get the picture.

However, for the next several months and possibly the next couple years, there will be a new normal. I am concerned about some short term and medium term risks associated with the coronavirus, not just economic risks but societal risks. Here they are:

No Immunity

With everyone sheltering in place, and not interacting with anyone else, individuals won’t be exposing themselves to viruses and bacteria that they usually would under normal circumstances. This would prevent them from building up immunity to infectious agents, making them more susceptible to illness during the flu season this fall. 

Baby Boom

In nine months, there will be a baby boom caused by the quarantining at home. This means that hospitals will be flooded with pregnant women during the December and January time frame, right during the peak of the influenza period. Will there be enough hospital beds? I realize that there can be more births at home and birthing centers but there will always be a need for hospitals to handle the C-section and difficult births.

Relapse

Will there be a relapse for those who  caught the coronavirus? According to a recent article in Newsweek dated April 13, South Korea is seeing a rise in ‘Reactivated’ Coronavirus patients.

Restaurants

How willing will people be to go out to eat at restaurants again? How long will social distancing in restaurants last even after the quarantine is over? Will restaurants reduce their number of tables by 50% and sit people at every other booth, thereby reducing their capacity and revenues?

Bankruptcies

Once one major company declares bankruptcy, such as a retailer or a cruise line, will it create a snowball effect? Will these corporations go bankrupt AFTER they receive the bailout money?

Inflation

The U.S. national debt is now over $24 trillion. The Federal Reserve Board has flooded the economy with trillions of dollars recently. Will the U.S. eventually have runaway inflation like Zimbabwe?

Nosebleed P/E Ratios

Price to earnings ratios are trading at extremely high levels, and infinite levels in some cases. The stock market can still go higher, but with many stocks trading at such inflated prices, not even taking into consideration the reduction in earnings during March and April, the market is due for a downturn.

Beneficiaries

Of course, there will be a few companies and their employees that will benefit from this pandemic. The corporations that provide online shopping, online entertainment, and online meeting and video conferencing will be the big beneficiaries.

Stay healthy everyone.