Fisher On How A Bull Dies

Top strategist Kenneth Fisher says there are two things that can stop a bull market — and he’s not seeing either at play right now.

Fisher says in his latest Forbes column that bulls end when they either lose steam or they hit a “newly emergent wall.” In regard to the former, he says, “Bulls climb the legendary ‘Wall of Worry,’ and when all worries wane to well-worn whitewashing, you’re out of steam.” For the latter, he stresses that the wall stopping a bull has to be new — an “unexpected, immovable bad force”. Because markets already digest known information, he says that none of the big headline worries of the day are going to stop this bull. “No, the wall isn’t, by definition, excess debt, congressional action (or inaction), ObamaCare, Iraq, Iran, valuations, on and on,” he says. “And it isn’t Crimea (though it might be if Russia truly goes on an unexpected global rampage).”

Fisher says it’s extremely hard to identify a bull-market-stopping wall, but for what it’s worth he doesn’t see one right now. “So I wait, watch and remain bullish, noting we’re still … straddling skepticism and optimism, and, hence, abundant force propels this bull on. Without a wall we’re maybe halfway through,” he says.

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