Bottom Fisher

DEFINITION of 'Bottom Fisher'

An investor who looks for bargains among stocks whose prices have recently dropped dramatically. The investor believes that a price drop is temporary or is an overreaction to recent bad news and a recovery is soon to follow.

BREAKING DOWN 'Bottom Fisher'

A bottom fisher may attempt to find stocks that the market has undervalued through fundamental analysis. Bottom fishers may also be more active during prolonged bear markets where there may be stocks getting hammered through panic selling. Unfortunately, it's difficult to tell the difference between a bargain and a stock that has fallen for a fundamental reason.

RELATED TERMS
  1. Philip Fisher

    A widely acclaimed stock investor and author who is believe to ...
  2. Fisher Effect

    An economic theory proposed by economist Irving Fisher that describes ...
  3. Noise Trader

    The term used to describe an investor who makes decisions regarding ...
  4. Fully Valued

    A stock whose price analysts believe reflects the market's recognition ...
  5. Overreaction

    A market hypothesis stating that investors and traders react ...
  6. Fisher College of Business

    The school of business at The Ohio State University. In 2009, ...
Related Articles
  1. Financial Advisor

    Ken Fisher's Success Story: Net Worth, Education & Top Quotes

    Learn about the rise of Kenneth Fisher, the would-be forester who became the founder of one of the largest money management firms in the country.
  2. Investing

    Ken Fisher's Q1 Investment Moves: AAPL,EBAY,CSCO

    Ken Fisher made some interesting changes in AAPL, EBAY, and CSCO to his portfolio in the first quarter.
  3. Markets

    The Top 5 Positions in Ken Fisher's Portfolio (AMZN, LQD)

    Pay attention to whether Amazon.com, Inc. remains the top holding of Fisher Asset Management despite a 27% share price drop during the first five weeks of 2016.
  4. ETFs & Mutual Funds

    Fisher Investments: Investment Manager Highlight

    Take a close look at Fisher Investments, a giant among money management firms.
  5. Financial Advisor

    Growth Investing: Famous Growth Investors (PRGFX)

    Find out who were the most famous growth investors of their time, and learn about the investment strategies that made them successful.
  6. Markets

    The International Fisher Effect: An Introduction

    The Fisher models have the ability to illustrate the expected relationship between interest rates, inflation and exchange rates.
  7. Trading

    Behavioral Finance: Key Concepts - Overreaction and Availability Bias

    By Albert PhungKey Concept No.7: Overreaction and the Availability BiasOne consequence of having emotion in the stock market is the overreaction toward new information. According to market efficiency, ...
  8. Trading

    Spotting Breakouts As Easy As ACD

    Wondering what it means to be a "logical trader"? Take a look at this system devised by Mark Fisher.
  9. Investing

    5 Methods To Avoid Value Traps

    Learn about five key factors that can help investors identify and avoid value traps in their stock market portfolio selections.
  10. Investing

    Value Investing: How Stocks Become Undervalued

    If you don't believe in the efficient market hypothesis, you can find a number of reasons why stocks might be trading below their intrinsic value. Many of these factors interact with one another ...
RELATED FAQS
  1. What does the Fisher Effect say about nominal interest rates?

    Read about what economists call the Fisher effect, which states that real interest rates are equal to nominal rates minus ... Read Answer >>
  2. How is the Macaulay duration related to fixed income markets?

    Determine how monetary policy influences the Fisher effect. The Fisher effect is used to determine real interest rates which ... Read Answer >>
  3. What is "hammering"?

    "Hammering" is a situation where large sale orders are placed against a particular stock because investors believe that the ... Read Answer >>
  4. What is Fisher's separation theorem?

    Fisher's separation theorem stipulates that the goal of any firm is to increase its value to the fullest extent, regardless ... Read Answer >>
  5. Why do stock prices change following news reports?

    Stock prices move up and down every minute due to fluctuations in supply and demand. If more people want to buy a particular ... Read Answer >>
  6. If I believe retail sector companies are overvalued how can I profit from a fall ...

    Examine the various trading strategies that can be employed by an investor who anticipates a decline in stock prices in the ... Read Answer >>
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center