Top strategist Kenneth Fisher says that the bull market has more room to run, and that investors should be looking to larger stocks as the bull run matures.
“In the second half of nearly every bull market you need only own bigger-than-average stocks to beat the market,” Fisher writes in his latest Forbes column. “By that, I mean market value north of $78 billion, which is the average market capitalization of stocks in the MSCI All Country World Index.”
Fisher adds that he thinks the bull will run for a while more. “Skepticism remains thick, and we’re far from seeing optimism or euphoria,” he says. “Hence, more bull ahead. And if I’m wrong and a bear lurks soon, mega-cap stocks will drop far less than more speculative smaller stocks.” Fisher offers five mega-cap picks, including PepsiCo.