Kenneth Fisher says that investors need to stop worrying, and that the bull market is only halfway done.
“Scandals in Obama-nation; China’s tepid growth; Europe’s lingering woes; stocks up too much, too fast; rising long-term rates; when QE ends–or doesn’t! Fill in your own five worries. Then there are the perennial faves: debt, inflation, terrorists, the Middle East, creeping socialism, creeping Obamaism–endless creepyisms,” Fisher writes in his Forbes column. “[But] as summer’s dog days melt into a daze, please remember that ubiquitous worries usually melt away, too.”
Fisher notes that earlier this year, the “fiscal cliff” and sequestration were the big worries, but now they are “starting to feel like distant memories. Worrying is normal, and we have a tough time disciplining our minds to resist it. But in my view it’s pointless. Any reputable doctor will tell you worrying is bad for your health, and that holds true for portfolios as well.” He says to remember the words of Sir John Templeton: “Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.”
Today, Fisher says, “We have one foot planted firmly in skepticism with the other straddling over to optimism. That means we’re about halfway through the bull market — with about four more years to go. Until the fret-o-meter drops further and we get much more optimistic, there is little to worry about.”
Fisher says Fed-tightening worries and “Bernanke anxiety” both make him bullish. He highlights several stocks he likes, including energy giant Chevron.
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