|New Threads Only:|
|New Threads & Replies:|
Forum List » Guru News and Commentaries|
Guru News, Stock picks and commentaries
Ken Fisher for Forbes - 'Don't Be a Cud Chewer in 2013'
Posted by: Holly LaFon (IP Logged)
Date: January 17, 2013 04:58PM
In this month's column, Fisher discusses why he recommends Johnson & Johnson (JNJ), China Mobile (CHL), Taiwan Semiconductor (TSM), BASF (BASFY) and Amazon (AMZN):
Negatives continue to abound. So why do I expect stocks to shine in 2013? Because I’m not a cow, I’m a bull. Let me explain: Most negatives you hear about are well known and widely discussed, digested and already priced into stocks. If it’s widely known, it’s either wrong or will have little impact on stocks. Fear of Europe? We’ve fretted over it for three years while stocks rose. Another Obama term—fully four years of fretting under our belts! The debt crisis—we will be fretting about that forever.
Markets are designed to price in all widely known factors. I see little now where the cud hasn’t already been chewed and rechewed. What’s a cud? A mass of semidegraded food that is regurgitated. It’s comfort food for cows and other herd animals. Following the herd can be dangerous to your financial health.
The herd’s latest obsession is the Fiscal Cliff. When Fiscal Cliff cud-chewing ends, they will rechew ObamaCare and then possibly Dodd-Frank. It’s all cud to me.
There is one fear I have that few are focusing on. It’s quantitative easing. I believe it’s actually contractionary and definitely nothing to be bullish about.
You should note that the actual broad quantity of money (M2 for example) has barely grown since QE1 began in 2008. Reserves grow, but the money supply doesn’t. Federal Reserve Chairman Ben S. Bernanke is paying interest on reserves and has flattened the yield curve. This has made banks less inclined to lend.
Continue reading here.
Guru Discussed: Ken Fisher: Current Portfolio, Stock Picks
Stocks Discussed: JNJ, CHL, TSM, BASFY, AMZN,
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.