In his latest Forbes column, top strategist Kenneth Fisher talks about why he hates annuities, and why he remains bullish on stocks.
With regard to annuities, Fisher says, “The contracts are huge, obtuse, confusing and hence rarely read. Sales reps rarely realize the lies they peddle, singing false praises–because they’re paid hugely for a blind eye–that hide obscenely gargantuan commissions. Hence they regularly mislead buyers, who, like ostriches with their heads in the sand, almost never understand what they’re buying, and who then spend years happily cashing their checks without any grasp of what actually happened.” He also talks about why variable annuities “are the cigarettes of the investment world,” in his view.
“At least with simple securities you know you face risk,” Fisher says. And one type of simple, up-front security he likes right now is stocks. Fisher looks at a handful of stocks that he’s high on. Among them: Honda Motor and Agricultural Bank of China.