Ken Fisher’s Price-to-Sales Ratio and Super Stock Picks

While investors and the media focus on a stock’s PE ratio, investing guru Kenneth Fisher affords more attention to the price-sales ratio as a valuation measure, writes Validea CEO John Reese in a recent Forbes article. Reese outlines the Fisher investment philosophy and related criteria that inspired one of his stock screening models. Using this model, Reese identifies the following five high-scoring picks: Steelcase (SCS) provides an integrated portfolio of furniture settings, user-centered technologies and interior architectural products. The company has a favorable price-to-sales ratio as well as long-term earnings-per-share growth. Manpower Group (MAN) is a provider of workforce solutions […]

Ken Fisher’s Wish List

In last week’s Forbes, money manager Ken Fisher offers a list of things he is grateful for as well as a wish list for the year ahead. He is grateful that: the election “noise and nonsense” is fading away; America’s stocks hit new highs as what he calls our “joyless bull market trudged on;” the global economy grew, albeit slowly “despite the endless stupid policies and regulations that governments and central banks keep spewing;” China didn’t “implode, as so many feared.” His hopes are that: Fed raises short-term rates several times, “so we can overcome our fear of that;” short-term […]

Fisher: The “Fog” of Uncertainty Good for Stocks

Ken Fisher, Forbes Magazine columnist and successful investment manager, explains why the uncertainty that investors are fearful of will subside with time and why this is good for stocks. He identifies a number of issues investors are wrestling with – China’s growth, the US presidential election, falling oil, Brexit, negative interest rates and a profits recession. These concerns, according to Fisher, could all be largely priced into the market and as we move through each of these with time, the “fog” of uncertainty will lift, and that should be good for equity investors. For instance, when it comes to the […]

Fisher: Parallels with the 1990s

  Long-time Forbes contributor and Fisher Investments CEO Ken Fisher opines that “the most stunning unnoted market phenomena right now are parallels between the past eight years and the period between 1988 and 1997,” which he suggests could mean that “this bull cycle may last longer than anyone imagines – maybe the longest ever.” Fisher analogizes the S&L crisis to the home mortgage crisis, as well as the government programs to address them and the impacts on Wall Street. He also notes political parallels in the U.S. and Europe, plus suggests possible causal similarities in emerging markets yield-curve spreads, corporate […]

Fisher: Market Correction Mirroring 1997. Bull Will Resume.

Ken Fisher, Fisher Investments chairman & CEO, says this correction looks very similar to that of 1997, which was referred to as the Asian Contagion. Like then, this correction has been influenced largely by uncertainty around currencies. Also similarly to 1997, the most recent correction is during a period of low interest rates, falling commodity prices and has come after a long period of time without the market seeing a 10% pullback. In addition, according to Fisher, this correction and the one in ‘97 come roughly about the same amount of time (6-7 years) after major real estate declines (1990 […]

Fisher: Don't Battle The Bull

While it has been much maligned, the current bull market isn’t much different than past bulls that followed major bear markets, according to Kenneth Fisher. And, Fisher says, the bull could run for quite a while more.

Fisher: Don’t Battle The Bull

While it has been much maligned, the current bull market isn’t much different than past bulls that followed major bear markets, according to Kenneth Fisher. And, Fisher says, the bull could run for quite a while more.

Fisher: It Sounds Crazy, But …

Worried about the U.S. economy? Emerging markets? Europe? Kenneth Fisher says not to focus on short term problems, but instead the enormous long term potential he sees in play. “Forget today’s myopic warnings of emerging markets meltdown, deflation death spirals, perma-stagnation and all the rest,” Fisher writes in The Financial Times. “In 20 years your world will be exponentially more prosperous and your quality of life immeasurably better.”

Why Catalysts Don’t Matter

After what has been a stellar 2013 for stocks, many investors are now wondering if there are any catalysts that can push the market even higher in 2014. But Michael Hanson of Fisher Investments’ MarketMinder says catalysts are not a requirement for market gains. “In times of broad market skepticism and even mild optimism, investors (amateur and professionals alike, sometimes desperately) look for catalysts to drive prices higher,” writes Hanson. “The mindset is: The market can’t climb unless we get some new event to propel it. Otherwise, the thing deflates like a week-old party balloon. It’s only QE that’s propping markets […]

Fisher: QE Can’t End Soon Enough

One of the common themes in the media regarding the stock market in recent years has been that investors are fearful of the Federal Reserve cutting back on its quantitative easing efforts. Top strategist Ken Fisher doesn’t buy that logic. “This is just such rot. Why would they fear rising long-term rates? Higher rates are supply-side monetary stimulus — which is just what the world needs now, after five years of the evil twin, demand-side monetary stimulus,” Fisher writes in a Financial Times column. Fisher says that supply-side factors matter more in terms of increasing money growth than do demand-side […]

Fisher on Why You Shouldn’t Fear a Recession

Fearful of a recession? Top strategist and Forbes columnist Kenneth Fisher says to take a step back and relax. In his latest column, Fisher talks about the recession-forecasting prowess of the Leading Economic Index, developed decades ago by Wesley C. Mitchell of the National Bureau of Economic Research. “Modified minutely since then, it has always fallen many months before any recession — always!” Fisher writes. “A fall doesn’t ensure we’ll have a recession, but if it doesn’t fall, we won’t. It’s high and skyrocketing now — and rising in the other 11 countries and Europe for which it’s calculated. So relax! […]

Fisher Looks to “Hero CEOs”

Ken Fisher says that, with the bull market maturing, investors can make hay by keying on star CEOs. “Usually the first third of a bull market is led by stocks bouncing back from getting crushed in the prior bear,” Fisher writes in his latest Forbes column. “But the last two-thirds of bulls are usually led by high-quality stocks, and particularly ones that weren’t perceived to be high quality early on. These companies are often thought to have  ‘hero’ CEOs. The later stages of bull markets tend to generate a flock of them.” Fisher says that many of these “hero” CEOs […]

Fisher Boosts Japan Exposure, Calls Out Media

Ken Fisher says he’s increased his exposure to Japan in the wake of the recent crisis — and he says the media is “fanning the hysteria” surrounding the nuclear situation there. Fisher tells Advisor One that he has “increased weight in Japan and picked up some other things, mostly technology, on the presumption that things tied to [Japan] will” improve faster than most people anticipate. “We think this is largely a tragedy that is being expanded in the media,” Fisher said. “It’s a shame because people are acting like there is a major radiation problem all over Japan.”