Latest news with #KenFisher
Yahoo
5 days ago
- Business
- Yahoo
Billionaire fund manager explains why so many missed the stock market rally
Billionaire fund manager explains why so many missed the stock market rally originally appeared on TheStreet. Stock market rally leaves many on sidelines after huge move Since President Trump paused most reciprocal tariffs on April 9, the stock market's gains have been eye-popping. Following a nausea-inspiring 19% drop from mid-February through early April, the S&P 500 has marched over 25% higher, setting new records in July. The gains likely have surprised many investors who were convinced that the economy was on the precipice of disaster, facing tariff-driven inflation and inevitable job situation, however, has proven far better than feared. So far, tariffs' impact on inflation has been muted, and the unemployment rate has stayed mostly flat. The potential for a better-than-hoped-for economy has left many on the sidelines, convinced that stocks will roll back to new lows. According to billionaire fund manager Ken Fisher, the thinking that led investors to sell stocks during the downturn may be deeply flawed. Fisher, the founder of Fisher Investments, a money manager with over $332 billion of assets under management, is worth a staggering $11.7 billion, good enough to rank 261st on Bloomberg's Billionaires Index. Fisher clearly knows a thing or two about making money in the market. This week, he explained, in one word, one of the biggest mistakes investors make in periods like this, while also offering a simple solution. Fisher Investments Ken Fisher sums up huge investor problem with blunt description Fisher has been investing professionally since founding Fisher Investments in 1979, so he knows a thing or two because he's seen a thing or two. His long career includes navigating the inflation-fueled early 1980s, Black Monday in 1987, the Savings & Loan Crisis, the Internet boom (and bust!), the Great Recession, Covid, and 2022's bear all those periods, he's noted one big mistake many investors make that slows their path to financial freedom, something he described recently with one word on "X" as "Breakevenitis." It's understandable to get nervous about portfolio values during market pullbacks, corrections, and bear markets. Retirement is expensive, and surging US debt creates a real risk that Social Security may not be able to keep pace with inflation in retirement, making the value of our investments in our retirement and personal accounts even more important. However, market drawdowns are common. Pullbacks of about 5% happen on average once per year, while 10% corrections occur every few years, according to Capital Group. Even 20% of bear markets are relatively frequent if you consider a 40-year career, happening about every six years. As a result, how investors react during these many sell-offs can significantly impact portfolio balances in your sixties, when retirement is knocking on the door. Fisher explains why 'breakevenitis' is so dangerous to investors Market sell-offs are usually driven by fear that is either false or overdone, according to Fisher. In either case, investors tend to sell during the downturn or near the low to limit losses because the pain of loss significantly exceeds the good feelings that come with gains, something economic behaviorists like Daniel Kahneman and Richard Thaler have considered extensively. Kahneman helped develop prospect theory, which popularized the concept of loss aversion. This theory states that people prefer small guaranteed outcomes over larger risky outcomes. Thaler's work maintains that the risk of loss is twice as powerful as the pleasure of that backdrop, it's not hard to understand why investors' emotionally driven decision-making often results in illogical choices, and breakevenitis is a prime example. Fisher describes it as the desire by investors who held through the downturn to sell their stocks once they return to flat, or breakeven. Fisher points out that rallies off downturns that return stocks to prior highs rarely roll over again and back to new lows. Instead, they continue higher, leaving sellers hoping to be proven right disappointed and portfolio values impaired. "People that get out looking for an all-clear signal later invariably miss the big gains," wrote Fisher. How to avoid breakevenitis and build a bigger portfolio Emotions have an outsized impact on our decisions, and since the stock market has historically traded higher over time, decisions that result in selling can often damage portfolios the most. Fisher thinks a simple solution can allow your portfolio to avoid falling victim to breakevenitis. "Breakevenitis is a disease that affects people, and there's a simple cure for it. Every time you get a correction and you're tempted to get out... look at the history of the returns after correction and after bear markets. No matter which you're in... the returns are bigger than any risk you could possibly have." For example, according to Sam Stovall of CFRA Research, the S&P 500 historically gains 38% in the first year of a new bull market and 12% in year two. Fisher recommends that if you feel emotionally driven to sell, consider the money you could leave on the table when stocks find their footing. While selling can protect you in the short term from losses, getting back in requires you to be right twice. You must get out before the downturn and back in on the upswing. It's tough to do that, especially when emotions are running amok. What does this mean for investors? Stocks typically go higher and lower than you think possible. Because people don't all act at once to buy or sell, when stocks are rising after a sharp sell-off, money trapped on the sidelines waiting for another dip often trickles back into stocks, helping to support stocks on pullbacks. Of course, anything can happen, but Fisher's point is that those invested in the stock market who stay the course do better than those who react emotionally, succumbing to things like 'breakevenitis.' If you're investing in individual stocks, all bets are off. Stocks can, and often have, gone to zero. However, suppose you're investing in a diversified fund or index. In that case, the odds are that a stock market recovery following a sell-off can create an opportunity for greater growth, suggesting that investors who hold pat, or dollar-cost average into the sell-off, fund manager explains why so many missed the stock market rally first appeared on TheStreet on Jul 25, 2025 This story was originally reported by TheStreet on Jul 25, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
18-07-2025
- Business
- Forbes
Does Your Work Feel Meaningless? How AI Job Redesign Sparks Motivation
Does Your Work Feel Meaningless? How AI Job Redesign Sparks Motivation Everybody is trying to figure out how to utilize AI best to deal with too many meetings, too many tools, and too many people who are quietly quitting. If your job feels harder than it should, the problem may be baked into the work itself. A lot of the structure around modern jobs was designed before today's technology and expectations existed. Now, with AI entering the scene, smart companies are starting to take a closer look. Not just at how to use the newest tool, but whether the work even makes sense anymore. Some organizations like TI People found that they can determine where friction builds up and use job redesign to reduce stress, increase motivation, and bring back a sense of progress. Why AI Job Redesign Is Key To Improving Motivation Why AI Job Redesign Is Key To Improving Motivation I remember interviewing Ken Fisher of Fisher Investments, who told me that what matters less in interviews is what people say they can do, and more about what they will actually do. But that also raises a bigger question: should some of that work even be done at all? The same goes for AI. Instead of asking what AI can do, it might be more useful to ask what AI should be doing. Forward-thinking leaders are stepping back to assess the flow of tasks inside their organizations. They are asking where time is being wasted, what is causing delays or confusion, and which tasks actually drive progress versus those that simply fill up the calendar. Instead of trying to automate everything, they are identifying friction points first. That includes where employees are duplicating effort, bouncing between systems, or filling out reports that lead to nowhere. In my own experience teaching online, I'm constantly shifting one score from one software platform to another. It's tedious, and it adds no value to the learning process. That kind of repetitive work is everywhere. Across different industries, people are spending hours doing things that look productive but serve no real purpose. Maybe organizations didn't have many options in the past. But now, smart companies can begin layering in AI tools to improve speed, accuracy, or personalization. This approach gives people their time and energy back. What AI-Powered Job Redesign Looks Like In Practice What AI-Powered Job Redesign Looks Like In Practice At a recent HRNxt event, I was impressed by a presentation from Volker Jacobs, founder and CEO of TI People. He shared how his organization, in collaboration with The HR Congress, took a bold approach to rethink how work gets done. Instead of focusing on job titles or big-picture roles, they zoomed in on tasks, what people actually do day to day, and examined whether those tasks still made sense in today's environment. Their approach created a fictional company called Alpha to explore how AI might affect daily tasks in HR. What made it powerful was that it used real input from fifteen large organizations across Europe. These companies shared detailed job descriptions, demographics, software platforms, industry context, and even staffing costs. All of that data was combined with a knowledge base co-created by over 150 contributors, including academics, HR professionals, AI tools, and business leaders. The goal was to map where friction was happening and test small changes to how tasks were done. The simulation pointed to wasted time in places like slow approval processes, unclear ownership of reports, and repetitive handoffs. By redesigning just a few of those tasks, companies saw a boost in clarity, energy, and employee motivation, before AI was even applied. They found that fixing tasks first freed up more time and reduced more frustration than simply layering AI onto broken processes. Some companies started with hackathons or sprints to identify what work no longer made sense. Others formed small model teams to pilot changes and scale what worked. The key takeaway was that motivation improved when people felt their time was being used better. Why Meaningless Work Still Dominates Modern Jobs Why Meaningless Work Still Dominates Modern Jobs Requiring Job Redesign When employees say they are burned out, it is often not the number of hours. It is the lack of impact. Gallup has consistently found that disengagement rises when people feel their work does not matter. That is especially true when processes are broken, when it takes six approvals to move forward, or when feedback gets lost in long email chains. My own research around curiosity has shown that when people do not understand the purpose behind their work, they stop asking questions. That leads to even more stagnation and quiet quitting. The bigger problem often is not resistance to AI, but the buildup of meaningless tasks that block progress and wear people down. How Redesigning Work Benefits Everyone, Not Just HR How To Handle Job Redesign So Work Benefits Everyone, Not Just HR You have probably lived it. Waiting for access to a tool that should have been granted last week. Copying and pasting data from one platform to another. Sitting in meetings that could have been solved with a two-sentence Slack message. These are annoying, add up to hours lost every week, and they are part of what makes modern work feel overwhelming. That is why efforts to redesign work need to be inclusive. HR might lead the process, but the insights should come from every level. When companies used models like Alpha, they found that even small tweaks, like rethinking how one report gets created or who owns a certain approval, could make a difference fast. The point is not to overhaul the whole system, but to find the tasks that are doing more harm than good. What You Can Do Now To Rethink And Redesign Work What You Can Do Now To Rethink Job Redesign You do not need a new platform to start fixing this. You need curiosity and a willingness to listen. Ask your team what slows them down. Where are they repeating work? What parts of the process feel confusing, pointless, or draining? Start collecting those stories and treat them as data. Then look at how work is actually getting done, not how it is supposed to get done on paper. Map it out. Where are the bottlenecks? Who is in too many meetings? Who is constantly jumping between systems? These are signs of friction. Once you spot them, you can test small changes by creating a pilot project and forming a model team. Then you can try a quick job redesign before committing to a full transformation.
AU Financial Review
06-06-2025
- Business
- AU Financial Review
Texan investment giant's $1b buy order pumps up CBA's share price
A Texas-headquartered investment manager has spent as much as $1 billion buying up Commonwealth Bank shares over the past fortnight, helping push the market capitalisation of the lending giant over $300 billion. Fisher Investments, founded by billionaire stockpicker Ken Fisher in 1979, manages more than $US299 billion ($459 billion) for thousands of clients. Sources said Fisher was buying on behalf of clients who wanted to increase the exposure of their share portfolios beyond volatile markets in the United States.
Yahoo
30-05-2025
- Business
- Yahoo
5 Stocks To Buy in a Bear Market
Whenever the stock market goes through extreme ups and downs — as they have so far in 2025 — you're likely to hear warnings of a coming bear market. Even if current market conditions were normal, you might still hear bear market chatter because Wall Street may be about due for one. The last S&P 500 bear market happened in 2022 and ran from early January to mid-October, PBS reported. On average, bear markets tend to come around about every 3 1/2 years, according to Hartford Funds. Read Next: Check Out: Read on for more details about whether a bear market is coming as well as five stocks that may be good to own in one. Based on that timetable, a bear market could be due within the next year or so — but it could arrive even sooner because of market and tariff uncertainty. In an April interview with TheStreet, veteran fund manager Ken Fisher made the case for a bull market in 2025. But he also said the U.S. will 'probably get a bear market and recession' if President Donald Trump's administration moves forward with a trade war. The stock market has already seen a correction this year, TheStreet noted. This means there was a decline of at least 10% from recent market highs. A bear market typically happens when stock prices fall 20% from recent market highs, according to Fidelity. If you're worried about a bear market, keep an eye on the S&P 500. It's up only slightly this year thanks to a recent rally. But the index hit a 2025 closing low of 4,982.77 on April 8 — down 19% from its closing high of 6,144.15 on Feb. 19. That kind of extreme dip had many experts sounding the alarm about a coming bear market. If Wall Street eventually moves into bear territory, some experts recommend gravitating toward large cap stocks with steady profits and an entrenched market position. You could also seek out stocks that pay dividends to have some source of income in a down market. 'Cut the weaker names, and rotate into companies with strong fundamentals,' said Edward Corona, a Florida-based trader and publisher of The Options Oracle Newsletter. Here are five stocks to consider buying in a bear market, along with a few of their important metrics. Learn More: Closing price (May 29): $172.96 Five-year return (through May 29): 142.08% Dividend yield (as of March 10): 0.47% Closing price (May 29): $199.95 Five-year return (through May 29): 151.56% Dividend yield (as of May 12): 0.52% Closing price (May 29): $311.86 Five-year return (through May 29): 67.38% Dividend yield (as of May 29): 2.26% Closing price (May 29): $458.68 Five-year return (through May 29): 150.30% Dividend yield (as of May 15): 0.72% Closing price (May 29): $97.10 Five-year return (through May 29): 134.81% Dividend yield (as of May 29): 0.97% Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses This article originally appeared on 5 Stocks To Buy in a Bear Market Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Ken Fisher's Strategic Moves: Amazon.com Inc. Sees a -1.1% Portfolio Impact
Ken Fisher (Trades, Portfolio) recently submitted the 13F filing for the first quarter of 2025, providing insights into his investment moves during this period. Ken Fisher (Trades, Portfolio) is the Chief Executive Officer and Chief Investment Officer of Fisher Investments. He has been writing Forbes' prestigious "Portfolio Strategy" column for over two decades, making him one of the longest-running columnists in the magazine's 85+ year history. During his many years of money management and market commentary, Ken has distinguished himself by making numerous, accurate market calls, often in direct opposition to Wall Street's consensus forecast. He is the son of legendary investor Philip A. Fisher, and Ken is the only industry professional his father ever trained. Ken has also written three major finance books, including the 1984 Dow Jones best-seller, Super Stocks, and has been published and/or interviewed in many major global finance and business periodicals. The investment philosophy at Fisher Investments is based on the idea that supply and demand of securities is the sole determinant of their pricing. Furthermore, they believe that all widely known information has already been priced into the market. The way to add value, according to the Fisher strategy, is to "identify information not widely known, or to interpret widely known information differently and correctly from other market participants." Fisher Investments employs a team of research analysts to accomplish these tasks. Ken Fisher (Trades, Portfolio) added a total of 117 stocks, among them: The most significant addition was Spotify Technology SA (NYSE:SPOT), with 2,028,898 shares, accounting for 0.48% of the portfolio and a total value of $1.12 billion. The second largest addition to the portfolio was HSBC Holdings PLC (NYSE:HSBC), consisting of 15,612,574 shares, representing approximately 0.39% of the portfolio, with a total value of $896.63 million. The third largest addition was Lloyds Banking Group PLC (NYSE:LYG), with 132,122,777 shares, accounting for 0.22% of the portfolio and a total value of $504.71 million. Ken Fisher (Trades, Portfolio) also increased stakes in a total of 398 stocks, among them: The most notable increase was SAP SE (NYSE:SAP), with an additional 7,875,567 shares, bringing the total to 12,993,705 shares. This adjustment represents a significant 153.88% increase in share count, a 0.92% impact on the current portfolio, with a total value of $3.49 billion. The second largest increase was UBS Group AG (NYSE:UBS), with an additional 45,938,949 shares, bringing the total to 49,975,870. This adjustment represents a significant 1,137.97% increase in share count, with a total value of $1.53 billion. Ken Fisher (Trades, Portfolio) completely exited 87 of the holdings in the first quarter of 2025, as detailed below: United Microelectronics Corp (NYSE:UMC): Ken Fisher (Trades, Portfolio) sold all 7,300,362 shares, resulting in a -0.02% impact on the portfolio. H&E Equipment Services Inc (NASDAQ:HEES): Ken Fisher (Trades, Portfolio) liquidated all 348,656 shares, causing a -0.01% impact on the portfolio. Ken Fisher (Trades, Portfolio) also reduced positions in 435 stocks. The most significant changes include: Reduced Inc (NASDAQ:AMZN) by 12,580,834 shares, resulting in a -27.86% decrease in shares and a -1.1% impact on the portfolio. The stock traded at an average price of $217 during the quarter and has returned -7.80% over the past 3 months and -3.90% year-to-date. Reduced Advanced Micro Devices Inc (NASDAQ:AMD) by 22,735,111 shares, resulting in a -94.39% reduction in shares and a -1.09% impact on the portfolio. The stock traded at an average price of $111.19 during the quarter and has returned 4.32% over the past 3 months and -2.32% year-to-date. At the first quarter of 2025, Ken Fisher (Trades, Portfolio)'s portfolio included 999 stocks, with top holdings including 5.12% in Apple Inc (NASDAQ:AAPL), 4.26% in NVIDIA Corp (NASDAQ:NVDA), 4.09% in Microsoft Corp (NASDAQ:MSFT), 3.45% in Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT), and 2.68% in Inc (NASDAQ:AMZN). The holdings are mainly concentrated in 10 of all the 11 industries: Technology, Financial Services, Healthcare, Industrials, Energy, Consumer Cyclical, Communication Services, Consumer Defensive, Basic Materials, and Real Estate. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
