Ken Fisher, the billionaire founder and co-CIO of Fisher Investments, has a bold prediction for the stock market in 2024 – it doesn’t need the Federal Reserve to cut interest rates to keep soaring. Despite widespread expectations of rate cuts this year, Fisher believes that investors may have misunderstood the impact of interest rates on the economy.
In a recent video sent to his firm’s clients, Fisher pointed to the stock market’s impressive performance in 2023, with the S&P 500 surging more than 20% after hitting a bottom in October 2022. This growth occurred without any interest rate cuts, indicating that there are other factors at play driving the market higher.
According to Fisher, investors may have already factored in the potential impact of rate cuts, as the Fed’s policy moves are widely discussed. While markets are still pricing in a 60% chance of rate cuts by the end of 2024, Fisher argues that interest rates are just one piece of a much larger economic puzzle.
Despite concerns about high interest rates in 2022, Fisher remains bullish on the stock market’s outlook for 2024. He believes that the economy’s strong growth and cooling inflation will help stocks continue their upward trajectory. In fact, Fisher predicts that the S&P 500 could see modest double-digit gains this year.
Investor sentiment also appears to be positive, with over 50% of investors feeling bullish about stocks in the next six months. Additionally, a Yale survey found that over 80% of individual investors believe the Dow will end the year higher, marking the most optimistic outlook since 2007.
Overall, Fisher’s optimistic outlook for the stock market in 2024 suggests that there may be more important factors than interest rates driving the market’s performance. As investors eagerly await the Fed’s next moves, Fisher’s perspective offers a fresh take on what may be fueling the market’s continued growth.
