A recent survey of fund managers by Bank of America Merrill Lynch shows that a record number of 78% respondents believe equities are overvalued following their rebound from the March low—the highest reading since the bank’s first such survey in 1998. This according to an article in Citywire. BoAML reports that the market rally, bolstered by government stimulus to fight the coronavirus-related economic fallout, has led investors to “move past ‘peak pessimism’ but any optimism… Read More
Putting all of your eggs in one basket extends to your choice of fund managers as well as investments, according to a recent Barron’s article. While understanding a manager’s philosophy and approach should clearly play a role, the article argues that it is equally important to fully grasp the fund’s fee structure, its inner workings and the team behind the manager. If and when there is a change, the article asserts that this information is… Read More
Add a new piece of evidence to the notion that most active fund managers fail to beat their benchmark indices over the long haul: According to recently released data from Standard & Poor’s, over the five years ending June 2008, the S&P 500 outperformed 68.6% of actively managed large cap funds; the S&P MidCap 400 outperformed 75.9% of mid-cap funds; and the S&P SmallCap 600 outperformed 77.8% of small cap funds. The data comes from… Read More