Fisher Investments’ Founder, Ken Fisher, Debunks: Well-Rested Investors Are Better Investors

Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher debunks the common myth that investors should invest in volatile assets only to their point of comfort. As he wrote in his book Debunkery, this can lead some investors to place too much of their portfolio in “safer” assets—likely limiting growth opportunities and jeopardizing their long-term goals in the process.

Ken says most investors have a longer time horizon than they might expect and, therefore, may require higher returns to maintain their standard of living throughout retirement. While equities have a greater tendency toward volatility in the short-term, Ken says the long-term growth potential of an equity-heavy portfolio could lower the risk of an investor running out of money in retirement. Short-term market declines are emotionally harrowing for investors of all ages, but Ken suggests taking a deep breath and tuning out the buzz to avoid emotional investing decisions that might harm your long-term financial objectives.