Are We Seeing Investor Euphoria? If So, What’s Next for Markets? Ken Fisher Answers
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- Опубліковано 6 вер 2024
- Some investors are worried that recent positive investor sentiment has crossed over into euphoric territory-potentially signaling a bear market on the horizon. In his latest video, Fisher Investments’ founder and Co-Chief Investment Officer Ken Fisher explains how to spot signals of true investor euphoria.
Ken explains that investor euphoria is typically predicated on unfounded beliefs that “things are different now.” According to Ken, euphoria is accompanied by market signals like a surge in low-quality initial public offerings (IPOs). These IPOs are considered low-quality because the companies looking to sell shares to the public have little fundamental evidence of profitability. Ken also draws attention to euphoric trends like big companies going on overly optimistic buying binges. Another marker of potential euphoria is evidence that investors are extrapolating earnings trends out to unknowable time frames-beyond the next three years.
Ken cautions that even when market signals begin to point toward investor euphoria, bear markets don’t often appear immediately. That means investors should avoid emotional decision-making and focus on the fundamental factors that are driving markets.
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Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. The foregoing constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice. Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice.
This video has good volume! Many of them do NOT and, being partially deaf, I cannot hear what Mr. Fisher has to say. Please turn up VOLUME in your studio so that I and others with hearing loss may be able to hear the info!!!! I have my volume at max and cannot hear the "sotto voce"....
Wisdom in pure form. Thank you for being a beacon of sanity and reason.
Well Mr.Fisher everything you mentioned in a euphoric market seems to be happening now.
Not true ipos are not generating massive 1st day movements, there is not an over abundance of fundamentally unsound IPOs, investors are not leveraging their accounts up through the roof like in past euphoric states...so although some things he talked about are occurring it’s not that they are occurring that is the problem it’s to what degree they are occurring or the severity of these things that matter.
valuable wisdom as always.
So point on. I so appreciate Mr Fisher's explanation of how the market behavior appears to be in a euphoric stage. It makes so much sense tying this example of the market to the DOT com market. Thank you for your words of wisdom.
so are we in Euphoria now ?
Admire your wisdoms. The great Sir. Templeton taught us bull market die on euphoric.
Thanks for your work Ken!
I love you and respect your insight. You are truly the person I look up to. From Korea
Thank you.
Surely, euphoria is part of the currently high multiples, but low interest rate expectations certainly are another
thanks!
Thank you sir
Now i'am reading your book, BEAT THe CROWD. specially chapter 8 is so amazing 👏 !
That means we all are in euphoria in April 2021, how much it will last -- nobody knows ??? 🤔
So basically the current markets are euphoric, however we don’t know how long it will last and we have not gone all the way to crazy euphoria just yet.
What's your opinion on bitcoin? So far I've avoided it because most governments haven't approved of it. But with companies like Tesla and Paypal doing their bitcoin thing, it seems like bitcoin is now part of low cost index funds, like the the S&P 500. Can bitcoin have adverse effects on the market?
Speculation is just that no matter how you wish to make it. Premise is that which follows sound investment guidelines will always lead to better returns in the long run.
cool.
Roblox sitting on a market cap nearly that of Ford and eclipsing the airlines says all that we need to know about overvalued IPO's.
Today's speculative IPOs are called ICOs
Kinda reminds me of the justification for bitcoin
Agree with the first comment on this thread aka the presentation, wisdom in pure form and a laugh to boot. Well spoken Ken Fisher.