Market Environment: Management and Chase Gains

market environment: This matches other recent forecasts, according to Market Watch. Earlier this month, Candace Browning, the head of B.of A. Merrill Lynch Global Research, wrote that 2017 could be the year of the active investor. According to a survey by Natixis Global Asset Management released this week, a majority of institutional investors said they favored active management over passive in the current environment, with 73% saying the market environment would likely be favorable to the strategy. There is a greater potential for active management to perform better in times of volatility or market stress, as managers have the freedom to find bargains, chase gains, or hedge against risk, while passive funds can t deviate from their benchmarks. That was an anomaly, however; in the second quarter of 2016, only 34% beat their benchmark. Recent market action has supported the case for active According to J.P. Morgan data, 53% of active managers outperformed their benchmark in the third quarter, helped by the volatility that resulted from Britain unexpected vote to leave the European Union in late June, and ahead of the early-November U.S. election. (news.financializer.com). As reported in the news.