Does recent perceived underperformance mean active management is dead and that we should all join the “long live the passive strategy” party? That depends.
With markets back within a few percentage points of the all-time highs (at the time of this draft), the question can be nagging at the back of some people’s minds: why not just trust that markets go up over the long-run and ignore the noise of government announcements, recession worry and the next potential market correction or surge? For some, that may admittedly be the strategy they will be most satisfied with. For others, they can’t stomach the severe pain of large losses or anticipate using funds prior to recovering from a major set-back.
Over the past 19 months, the S&P 500 has been in a trading range. It can be hard to remember this considering financial news media coverage likes to talk about how high the market has climbed in 2019. Looking from a higher view, it has indeed been up and down a lot over that timeframe, but ultimately momentum has been flat, resulting a range bound market and a flat trendline.
Copyright 2019 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Right Reserved. See NDR Disclaimer at www.ndr.com/copyright.html. For data vendor disclaimers refer to www.ndr.com/vendorinfo
Investment advisory services are offered through BCJ Capital Management, LLC., an SEC Registered Investment Adviser. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed, and past performance is no guarantee of future results. For specific tax advice on any strategy, consult with a qualified tax professional before implementing any strategy discussed herein. BCJ FG 19-148