Feb 18, 2013

Ken Fisher on how stock market negatives are digested and discounted

Negatives continue to abound.  So why do I expect stocks to shine in 2013?  Because I’m not a cow, I’m a bull.  Let me explain: Most negatives you hear about are well known and widely discussed, digested and already priced into stocks.  If it’s widely known, it’s either wrong or will have little impact on stocks.

Fear of Europe?  We’ve fretted over it for three years while stocks rose.  Another Obama term—fully four years of fretting under our belts!  The debt crisis—we will be fretting about that forever.

Markets are designed to price in all widely known factors.  I see little now where the cud hasn’t already been chewed and rechewed.   What’s a cud?  A mass of semidegraded food that is regurgitated.  It’s comfort food for cows and other herd animals.   Following the herd can be dangerous to your financial health.

~ Ken Fisher, Forbes, January 2, 2013

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