Fisher sees V-shaped recovery for global stocks
Thursday, 17 September 2009
NEW YORK, Sept. 16 (Bloomberg): Global stocks are in the middle of a "V-shaped recovery," led by emerging markets, that will last for at least another six months, billionaire investor Kenneth Fisher said.
"The bigger and uglier the bear market, usually the bigger the V," Fisher, who manages $28 billion as chief executive officer of Fisher Investments Inc. in Woodside, California, said in an interview in New York. "A normal V-shaped recovery lasts one year, and the current rally started in March."
The MSCI AC World Index, which includes both emerging and developed market stocks, has rallied 66 per cent since reaching a six-year low on March 9. The Standard & Poor's 500 Index has surged 56 per cent over the same period. The Shanghai Composite Index, the best-performing benchmark measure globally a year after the collapse of Lehman Brothers Holdings Inc., has risen 42 per cent. The measure fell 0.6 per cent to 3,014.32 as of 2:29 p.m. local time.
Fisher predicts Chinese stocks will lead the bull market in global equities, as a 4 trillion yuan ($586 billion) stimulus package and record lending spurs growth in the world's third- largest economy. Economists anticipate China's gross domestic product growth will accelerate to 9.5 per cent next year from 8.3 per cent in 2009.
"The bigger and uglier the bear market, usually the bigger the V," Fisher, who manages $28 billion as chief executive officer of Fisher Investments Inc. in Woodside, California, said in an interview in New York. "A normal V-shaped recovery lasts one year, and the current rally started in March."
The MSCI AC World Index, which includes both emerging and developed market stocks, has rallied 66 per cent since reaching a six-year low on March 9. The Standard & Poor's 500 Index has surged 56 per cent over the same period. The Shanghai Composite Index, the best-performing benchmark measure globally a year after the collapse of Lehman Brothers Holdings Inc., has risen 42 per cent. The measure fell 0.6 per cent to 3,014.32 as of 2:29 p.m. local time.
Fisher predicts Chinese stocks will lead the bull market in global equities, as a 4 trillion yuan ($586 billion) stimulus package and record lending spurs growth in the world's third- largest economy. Economists anticipate China's gross domestic product growth will accelerate to 9.5 per cent next year from 8.3 per cent in 2009.