Ken Fisher Analyzes Market Volatility Amidst Rising Tariffs
San Francisco, Friday, 11 July 2025.
Ken Fisher assesses market conditions shaped by tariff tensions and volatility, advising strategic financial planning to navigate potential bear markets, especially for retirees and entrepreneurs.
Introduction to Current Market Conditions
In his latest viewer mailbag, Ken Fisher, founder and Co-Chief Investment Officer of Fisher Investments, addresses the current economic landscape dominated by volatility and tariff disputes. He emphasizes that tariffs, while not large enough to trigger a recession, remain a potential hindrance to economic growth. Fisher asserts that strategic financial planning is vital, especially for those nearing retirement or leading businesses in uncertain times [1].
Impact of Tariffs on the Financial Market
On April 2, 2025, the announcement of new tariffs resulted in significant market correction—the market dipped nearly 20% from its peak following what is termed ‘Liberation Day.’ This downturn illustrates how external economic policies can provoke swift reactions in the stock market, heightening the overall sense of volatility. In response, the administration decided to hold the reciprocal tariffs for 90 days, reflecting an acknowledgment of the initial misstep [1].
Analysis of Bear Markets and Strategic Planning
Ken Fisher highlights the importance of recognizing the sequence of returns risk, particularly for retirees. He explains that a bear market early into retirement can be more detrimental than one occurring later. Such volatility impacts compounding and overall portfolio health, making it essential for investors to adopt robust strategies that can weather these downturns. Historical examples, like the bear market from 2000 to 2003, demonstrate the prolonged effects such downturns can have on financial planning [1].
Influence of Tariffs on Global and Domestic Markets
The current trade policies have led to a notable divergence in market performances. While the U.S. market has experienced flat or negative growth, international markets have seen vibrant bullish trends—partly due to the flight of capital in reaction to tariff implications. This shift underscores the necessity for diversified investment strategies to mitigate localized risks. The notion that ‘presidents tend to get the currency they want’ further complicates economic dynamics, as a weak U.S. dollar might offset tariff impacts on domestic goods but also introduces additional layers of economic uncertainty [1][2].