Why Ken Fisher Is Optimistic About European Stocks

Transcript

Ken Fisher:

So last year, and now, I'm relatively optimistic about European stocks and people have a hard time with that because most people don't like European stocks. And they'll ask why? And it's because most people don't like European stocks, it's pretty simple.

The fact is that when you try to measure sentiment on a consistent basis around the globe, in America, people think poorly of European prospects. In Europe, people think poorly of European prospects. In Asia, people think poorly of European prospects.

Now the game in investing is will things moving forward not be good or bad, but be better or worse than extant expectations? And when expectations are very low, it's easy to beat that hurdle. The fact is, in Europe right now, economies are doing better than people have expected. It's one of the reasons why Europe's doing okay. Is it doing as well as I hoped at the beginning of the year? Not quite. That may come later. I might be wrong, may not come later.

But the fact is, why am I relatively optimistic about Europe? Because so few people are. The expectations are so low it's easy for reality, subsequently, to be a little better than those very low expectations. It's hard for them to be much worse. And therefore, I expect expectations to be worse than future realities, therefore, stocks to do pretty well.

Thank you for listening to me, I hope you found this useful and enjoyable. Hi, this is Ken Fisher. Subscribe to the Fisher Investment YouTube channel if you like what you've seen. Click the bell to be notified as soon as we publish new videos.