Ken Fisher Explains How Stocks Look 3 to 30 Months Out

Описание: Ken Fisher explains how efficient markets pre-price widely known information. Further, Ken says it is stocks’ job to weigh probable future outcomes based on widely known information and reflect those probabilities in prices quickly.

How does this work? As stories, facts, news and opinions are released and dispersed, investors act on them near instantaneously, adjusting stock prices accordingly. Ken Fisher says this is why so many investing fears end up having little-to-no impact on stock prices—because those things have already been acted upon and priced into stocks.

According to Ken Fisher, the stock market only focuses on probable outcomes approximately in the next 3 to 30 months. Things too near term are often already pre-priced into stocks and things too far out may have too much uncertainty for stocks to price them just yet. Additionally, gradual changes like demographic trends may be too slow moving to affect stocks as much as many fear.

Ken Fisher says you can see pre-pricing in practice just by looking at markets’ reactions before and after the COVID-related lockdowns last year. The surprise of the lockdowns caused the market to buckle, but after that, Ken believes the market acted in very predictable ways—anticipating and pricing in the recovery that was likely to come in the next 3 to 30 months.

If you would like to learn more of Ken Fisher’s and Fisher Investments’ thoughts on capital markets, visit us at https://www.fisherinvestments.com/en-us.

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Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. The foregoing constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice. Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice.