Fisher Investments' "Three Things You Need to Know" Nov. 18th

Transcript

Naj Srinivas:

Hello and welcome to Fisher Investments' Three Things You Need to Know, our weekly series designed to help you sift through the financial noise to understand what really matters for markets.

My name is Naj Srinivas, and I'm an Executive Vice President here at Fisher Investments. And here are three things you need to know this week. Let's start out with the latest in US politics. But first, a disclaimer. At Fisher Investments we look at politics from a nonpartisan lens.

Our focus is on understanding how political developments may impact the market. That said, as Inauguration Day approaches, many market watchers are carefully studying President Trump's transition team and cabinet appointments for clues on potential executive or legislative action that may impact stocks. Our advice? Remember that actual policies and passed legislation matter more than personalities or rumor.

The Republican sweep may raise political risks. But with thin majorities in Congress, sweeping legislation is far from certain. Next, let's talk about stock market highs. As we sit here today, global stocks have risen 20%, hitting dozens of new highs throughout 2024. And several major US indices hit new milestones just last week. While all time highs may give some of you a "fear of heights", our research shows that stock markets often keep climbing well after hitting new all time highs, often dozens of times.

Avoiding stocks simply because they're at high levels can often lead to missing out on huge gains and can come with significant opportunity cost, especially if your goals require long-term, equity-like growth. Finally, let's chat about bitcoin. It's back in the spotlight after a wild ride this year, charging to new heights. We're often asked if bitcoin or cryptocurrencies are good investments. And while we don't dismiss any investment outright, we generally believe that stocks and bonds are generally better for long term investors, particularly retirees.

Cryptocurrencies like bitcoin can be volatile and very tricky to time. They go through huge periods of boom or bust and long periods where they don't do anything at all. As a result, investing successfully in cryptocurrencies like Bitcoin can require perfect timing and a great deal of luck to benefit from, especially in the long term. In our view, that's why it's so important to understand the risks and rewards before deciding to invest in bitcoin or cryptocurrencies as a part of your long term investment strategy.

That's all for this episode of Three Things You Need to Know this week. For more insights, catch our weekly series This Week in Review every Friday. You can also visit FisherInvestments.com for more insights. Thanks so much for watching, and please don't forget to subscribe!