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.

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RELATED FAQS
  1. 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 >>
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    Fisher's separation theorem stipulates that the goal of any firm is to increase its value to the fullest extent, regardless ... Read Answer >>
  3. If I own stock that drops in price is this a sign that I should buy more?

    This is a good question, and the answer has two parts. First, let's address the concept underlying the strategy to which ... Read Answer >>
  4. 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 >>
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