Stock picking is making a comeback with nearly half of managers beating the market

  • 📰 CNBC
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 72%

Singapore News News

Singapore Singapore Latest News,Singapore Singapore Headlines

Stock picking is making a comeback as active investors are on pace for one of their best years in a decade.

"Good news for active managers: stock-picking is making a comeback," Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America Merrill Lynch, said in a note to clients last week.

A key reason for the better performance is that stocks are now less correlated with each other, compared with sectors overall. That suggests that picking stocks now matters more than just picking a winning sector, Subramanian said. That's even more exacerbated by the trade war, which is helping and hurting different companies within sectors. For example, tech companies with more exposure to foreign demand have been underperforming.

Growth funds have fared best this year, with 60% outperforming the Russell. Slightly less than half of value funds have outperformed their Russell benchmark, while core funds are the biggest laggards. Still, for those who are picking the right stocks, there appears to be a scarcity of opportunity, or so-called "alpha," so it's unclear whether their hot streak can last.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in SG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Gosh, could that possibly be because the market has basically gone sideways over the last rolling year?🤷‍♀️

I guess so with the huge tax breaks

4 GROWTH companies worth review with analysis for greater stock price increase; 1)NRG METALS, INC(NRGMD), 2)SAUER ENERGY (SENY), 3)XSUNX (XSNX) 4)WEB TO DOOR/SUPERVA GROUP(SPRV)//These 4 growth companies are unique in development w/ contribution to US economy+

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Investors renew calls for Deutsche Bank to trim investment bankDeutsche Bank investors are renewing calls for it to scale back its investment b... NESSERCERY
Source: Reuters - 🏆 2. / 97 Read more »

Nvidia stock rally loses steam on cloudy outlook for server chips, full-year earningsNvidia Corp. shares shed big gains in the extended session Thursday after the graphics-chip maker does not provide a full-year outlook and says that...
Source: MarketWatch - 🏆 3. / 97 Read more »

U.S. stock market turns positive in late-morning action amid report on delay in auto tariffsThe S&P 500 and Nasdaq Composite indexes momentarily traded in positive territory in early trade Wednesday, amid investor focus on trade developments...
Source: MarketWatch - 🏆 3. / 97 Read more »