In an interview with Steve Forbes, Kenneth Fisher says that dollar-cost averaging isn’t a smart strategy over the long run, and says the increasingly popular 10-year “Shiller” P/E isn’t a great tool for making investment decisions. In this clip, Fisher says the Shiller P/E is “only a little predictive” of stock returns over the long haul, and offers no help predicting returns over 1- to 3-year periods. In the full interview, Fisher also discusses how you can take advantage of investor behavior to make money in the stock market, and where he sees the market heading this year. And he talks about why he’s keying on stocks that “can take on a luster of higher image” rather than the junk stocks that led the first part of the bull market rally.
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