Top strategist Kenneth Fisher says the bull market has a long ways to run.
“We’re moving slowly into the back half of the bull market,” Fisher tells Think Advisor. “[Great stock picker] John Templeton said bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria. We’ve got one foot in skepticism and the other in optimism. Everything takes a long time in bull markets. We’re five years into this one and haven’t reached optimism yet. That means we’ve got years to get to euphoria. Standard corrections can pop up at any point, but we have a long period of bull market to go because we haven’t got past all the skepticism.”
Fisher also talks about why he wants the Federal Reserve to end its quantitative easing program, and why he doesn’t think a recession is coming anytime soon. He’s high on “big, high quality” stocks like “pharmaceuticals; big, boring names in technology; a little energy; consumer staples. Midsize banks and [non-European] foreign banks look pretty good — banks that are in the business of taking in deposits and making loans.” He also says he thinks emerging market and European stocks, outperformed by U.S. stocks so far in the bull market, are likely to make up some of that ground going forward.