Ken Fisher: Bull Market Is Halfway Done

The bull run in the stock market has reached its half-life, and large-cap companies are the way to invest from here, CEO Ken Fisher of Fisher Investments told CNBC on Tuesday.

“People are optimistic about their own lives, but they’re skeptical about everything else. Therefore, we’re going to move from that skepticism, eventually, to some form of optimism, or lack of skepticism, and that means people who haven’t been in the market will get in, will capitulate and put prices higher,” he said on “Fast Money.”

Fisher noted a trend from large-cap stocks.

“This year, we started the process where the very largest stocks started outperforming,” he said. “Usually that happens just about 40 to 60 percent of the way through the time of a bull market, so therefore I think we’re probably about halfway through the bull market and we have several years fully to run.”

Fisher picked five large-cap stocks that he thought had room to run: Intel, PepsiCo, Sanofi, ExxonMobil and BHP Billiton.

“The fact of the matter Is, normally in the back of bull markets, any half of the stocks that are bigger than the dollar-weighted average cap of the market beat the market,” he said. “It’s a real simple game, and stock-picking mostly works against you.”

Trader disclosure: On Sept. 25, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Josh Brown is long AAPL; Josh Brown is long WFC; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long SBUX; Josh Brown is long XOM; Mike Murphy is long WFC; Mike Murphy is long TGT; Mike Murphy is long LEN; Mike Murphy is short KBH; Mike Murphy is long TWI; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Jon Najarian is long call spreads in AKAM; Jon Najarian is long call spreads in FB; Jon Najarian is long call spreads in DHI; Jon Najarian is long call spreads in LEN; Jon Najarian is long call spreads in FIO; Jon Najarian is long CBOE; Jon Najarian is long CME; Jon Najarian is long GLUU; Jon Najarian is long STSI;

For Ken Fisher
Fisher Investments is long INTC
Fisher Investments is long PEP
Fisher Investments is long XOM
Fisher Investments is long SNY
Fisher Investments is long BHP.

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