While the market has stumbled following Tuesday’s elections, top strategist Kenneth Fisher says investors shouldn’t get their market outlooks tied up with election results.
“Don’t believe too much in your political ideology relative to how the economy and markets will do,” Fisher writes in his latest Forbes column. “Most folks make that mistake. Those whose side loses typically see a dismal future. Don’t bet on it.” He says that “in modern history, with few exceptions, the first five to seven months after we’ve … reelected a Democrat have been perfectly fine for stocks”. As the dust settles following elections, he says, investors stop fretting about the uncertain landscape.
Fisher also says the economy isn’t driven by politicians. “Our national wealth didn’t come from politicians of any ilk, level, office or ideology,” he says. “It came from the long-term, much defiled 1% of the population and their dedicated followers via the marvelous magic of capitalism. I’m talking about people like Andrew Carnegie and Dale Carnegie, James J. Hill and Napoleon Hill. More recently Sam Walton, Bill Gates, Gordon Moore and others: capitalists long ranking as the ultimate wealth creators!”
Fisher reiterates his belief that we have “years of bull [market] ahead”, and says mega-cap stocks are the place to be. He recommends five, including software giant Oracle.