Getting More Active: The evolution of investing
By Yoonjai Shin, CFA
Vice-President & Portfolio Manager, Multi-Asset Management
Over the past 35 years, investing in the broad equity markets has been profitable for many investors. The S&P 500 Index returned 12% on average per year for the 35 years ending May 31, 2017. Among the driving forces of this formidable rising tide were unprecedented monetary stimulus, persistent budget deficit spending, government deregulation of industries, expanding world trade, labour force growth and technological innovations. With the exception of technological innovation, the ability of these factors to drive the economy forward may decline as they either approach their natural limits or face political challenges. These structural shifts may lead to disappointments for passive investors who set their future return expectations by extrapolating their past experiences, even if they are looking back as far as 35 years. Meanwhile, active managers will likely need to get accustomed to being even more active in order to deliver strong results for their investors. Read the full article here>>June 2017
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