Fisher Investments' Founder Ken Fisher Explains the Dangers of Breakevenitis

Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher discusses the dangers of misidentifying a bear market. Ken believes the current downturn in stocks is characteristic of an archetypal correction versus the beginnings of a long lasting bear market. In light of recent market volatility, Ken encourages investors to remain patient and avoid trying to time the market.

Ken explains how investors may be tempted to sell stocks during downward volatility, but exiting the market now could be a mistake. According to Ken, investors who try to time the market risk missing the inevitable rebound that typically follows a swift, steep market decline. He also unpacks the opportunity costs associated with “breakevenitis”—when investors sell stocks that have rebounded to pre-correction levels and miss out on future growth.