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. Fisher Effect

    An economic theory proposed by economist Irving Fisher that describes ...
  2. Philip Fisher

    A widely acclaimed stock investor and author who is believe to ...
  3. Noise Trader

    The term used to describe an investor who makes decisions regarding ...
  4. Value Investing

    The strategy of selecting stocks that trade for less than their ...
  5. Overreaction

    A market hypothesis stating that investors and traders react ...
  6. Fully Valued

    A stock whose price analysts believe reflects the market's recognition ...
Related Articles
  1. Investing News

    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. Entrepreneurship

    The Greatest Investors: Philip Fisher

    Philip A. Fisher Born: San Francisco, California in 1907; Died 2004 Affiliations: ...
  3. Investing News

    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. Investing News

    Fisher Investments: Investment Manager Highlight

    Take a close look at Fisher Investments, a giant among money management firms.
  5. Investing News

    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. Economics

    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. Professionals

    Doris Fisher

    Find out how these leading ladies made their way to the top.
  8. Active Trading Fundamentals

    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, ...
  9. Active Trading

    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 ...
  10. Investing Basics

    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.
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. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center