Bank of America Says We’re Moving to a More National Environment
According to Bank of America strategists, active management will outperform indexing in 2019 as the market shifts from a regional to a more national environment.
The bank’s strategists said, “It’s time to quit being an indexer and start being more active.”
The estimation variance is close to the historical maximum.
The “old lead” that did well during the time of the lowest interest rates is represented by a large number of long-term, high-growth technologies in the S&P 500.
Since a good November, active funds have performed better than benchmarks and are 45% ahead of them, while the S&P 500 is down 19% for the year as of Monday, marking its worst year since 2008.
In a more pessimistic assessment, Morgan Stanley strategist Michael Wilson says that the impending earnings recession may be comparable to the one that occurred in 2008–2009 and may result in a new stock market bottom.