Macro Minutes: Which Equities Will Lead in a New Bull Market?

In this month’s Macro Minutes video, Fisher Investments’ Research Analyst Tom Kirby explains the “bounce effect” and which types of equities we expect to outperform moving forward.

Key Points

• The end of bear markets and beginning of new bull markets are driven by “non-fundamentals,” such as investor sentiment and liquidity.
• The “bounce effect” is typically seen in new bull markets, where the types of equities that fall the most in the bear, bounces the most afterwards.
• We expect last year’s most beaten up equities, including many tech and tech-like stocks, to outperform as they rebound off of bear market lows.