Kenneth Fisher says the European debt crisis won’t be enough to stop the stock market in 2012, and expects a big up year for stocks.
“Volatility spooked investors in 2011, and as a result there are few superbulls or superbears out there,” Fisher writes in his latest Forbes column. “Most pros are noncommittal, mildly bullish or bearish. No one is expecting a huge trend. This is the perfect environment for an up-a-lot year.”
While many say the Eurozone crisis will weigh on stocks, Fisher says he doesn’t see it. “Only Spain and Italy really matter. Italy needs to roll over almost half this year’s debt in February, March and April. Thereafter the coast is pretty darned clear — and fears will fade,” he writes. “Capital markets tend to anticipate events, and so far all I see are strengthening markets. Italy should muddle through. When the rest of the market finally realizes there will be no crisis, stocks will have already rebounded sharply. My advice is to buy now to beat the rush.”
Fisher offers several suggestions for where to look, including Dow Chemical. To read the full article and see all the picks, click here.