Wall Street’s Stock Pickers Win When the Market Crumbles
- Leuthold study shows stock pickers outperform in market dips
- Large-cap growth rally makes life hard for active investors
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Against all the outflows, the disappointing returns and the backlash on fees, active stock managers have a powerful rebuttal: We’ll save you when times get tough.
Turns out, it’s actually true. Stock pickers do better when prices fall. Whether it’s because of luck or talent is the topic of expanding research into how investor biases — and the sheer math of the market — determine who succeeds and who fails trying to beat the index.