Fisher Investments Investing IQ: Fisher Investments Analyst Perspective – 6 Things Investors Should Expect for the Rest of 2011

Fisher Investments Analyst Mike Hanson on what investors should expect for the rest of 2011.

Excerpt from post:

“So far, 2011’s been a difficult year: Bulls can’t get much traction, and bears are wondering when the big drop will happen—it’s been a choppy, basically flat market so far, where neither big fears like sovereign debt nor big boons like blockbuster earnings are tipping the scale either way.”

For the full article, click here:  Investing IQ – 6 Things Investors Should Expect for the Rest of 2011 (Fisher Investments Analyst Perspective)

Foreign Funds

Direct foreign investment in the US jumped from $153 billion to $228 billion in 2009—something that likely wouldn’t have happened if foreigners had a dim view of America’s economic future. DFIs can help companies raise capital and support the creation of new factories, production and jobs that, in turn, help boost the US economy. For more, see Fisher Investments, 05/13/2011 cover story, “Capital Wanted: Invest Within.”

Disbelief

Most people would agree markets have been choppy lately. But as this article illustrates, caution should be taken when extrapolating recent short-term trends far into the future. In their webzine Marketminder.com, Fisher Investments often writes about many investing myths and false beliefs. For example, Fisher Investments believes that just because many are worrying about the state of the economy or stocks doesn’t mean investors should jump on the bandwagon and worry right along—because, after all, “pessimism can be actually bullish.”

Interesting Announcement

Michael Hanson, Lecturer at UC Berkeley Haas School of Business, recently blogged about some new resources available to investors from Fisher Investments: “Fisher Investments is beginning with some of the most widely used social media platforms, including Facebook, Twitter, Flickr and YouTube. Through its YouTube channel, Fisher Investments showcases a number of videos, including educational clips, market commentary by CEO Ken Fisher, and roundtable discussions with the firm’s investment decision makers. Flickr is a photo sharing site with photos of the company work environment. On Facebook and Twitter, Fisher Investments streams snippets of content from its MarketMinder website and Fisher Investments Press book series.”  The full announcement from Fisher Investments can be found here: http://www.pr.com/press-release/327363

 

Leaders Unite

 Greek leaders face some difficult decisions ahead. Appointing new leaders is one of these challenges, even if it’s mostly political posturing to win the favor of constituents or others. Fisher Investments’ MarketMinder cover story, “Kicking the Greek Debt Can” offers more details.

Normal Recovery

One thing many people don’t seem to realize is this recovery (both stock market and economic) is actually pretty normal when compared to other recoveries in the past. Michael Hanson, Research Group Manager at Fisher Investments, explains in his blog why he believes capital markets have recovered in a typical fashion after a big bear market and why economies globally have also recovered normally after a big recession.

Indicators

There are many economic indicators—and the recent Leading Economic Indicators report shows none is a perfect gauge of future economic activity. Not all economic indicators have been disappointingly weak lately, and analysts’ estimates have been wide of the mark in both directions—which could be a reason for recent stock market volatility. For more, see Fisher Investments’ MarketMinder story, “The Great Expectations Gap.”

Trichet’s Admission

“In a speech accepting the Charlemagne Prize for European unity, Mr. Trichet said the ‘union of tomorrow’ could include veto power for European institutions over national budgets, and even a common finance ministry to shape countries’ economic policies.”

—   Brian Blackstone and Marcus Walker

In a recent write-up, Michael Hanson, Research Manager at Fisher Investments, points out the general media is missing a big concept in Trichet’s speech: “It’s a tacit admission the current system is untenable. That is, the concept of a unified monetary policy with discreet fiscal policies among nations is a long-term recipe for disaster.” Read more here.

Greece Is On

A recent article in the New York Times discusses Greece’s everlasting turmoil—which probably doesn’t come as a big surprise to many readers because it’s been one of the headline stories for a while now. Fisher Investments sees the Greek debt issue as a situation worthy of attention, but investors should weigh likely and potential negative fallout against other global positives. For more, see Fisher Investments’ MarketMinder story, “Rumors and Bailouts.”

Distressed Home Sales

“Distressed home sales are dragging down overall home prices and mask the fact that home prices in the ‘non-distressed’ sector of the market are actually starting to show some healthy, positive appreciation.” Fisher Investments agrees—as Mark J. Perry points out, the overhang in distressed properties has had an influence on headline housing statistics. It will take time for housing to work through extant oversupply. But this is how the market works—prices readjust until they meet demand.