Fisher Investments’ Founder Explains How To Navigate the Current Bear Market

Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher discusses his thoughts on navigating the current bear market. Ken says it is normal to consider changing your portfolio positioning during downward market volatility. Making changes or staying put at this point, he says, should largely depend on how your portfolio holdings are positioned to capture the upside once a bull market resumes.

Ken explains how categories that suffer the most during bear markets tend to fare better during market recoveries. In today’s bear market, growth stocks consistently get hit hard on down days and perform better than the broad market on positive days. Ken says this is a sign that growth categories may be the best bet for the coming recovery. He also reminds us that bear markets tend to bottom relatively quickly after crossing the -20% threshold—the median timeline is about one month. Given this market’s drop below 20% on June 14, Ken says now may be the time to position your portfolio toward growth stocks to benefit from the impending rebound.