Personal Wealth Management / Market Analysis
Ken Fisher on Growth and Value Stocks. Which to Invest In Right Now?
Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher discusses the difference between growth and value stocks. According to Ken, there is a time and place to invest in each category. Value stocks tend to fare better in early bull market cycles while growth stocks tend to outperform in mature bull markets due to their ability to continue growing earnings amid slowing economic activity. Ken says the category emphasized in your portfolio should depend on analysis of a bull market cycle, but diversification can be an important guardrail against risk.
Ken believes the current bull market, beginning in March 2020, has an old soul—behaving like an extension of the previous bull market, which started in March 2009. According to Ken, this helps explain why growth stocks have continued leading value stocks, despite a bit of a tug-of-war. Today, when most expect value stocks to outperform, Ken says it could pay to think like a contrarian.
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