Reuters
Stock pickers are in a prime position with the rise of passive index funds.
Increased passive investors create opportunities for active investors in the stock market.
Bank of America’s Savita Subramanian shares insights on how to outperform the stock market in 2024.
The shift from active to passive investing presents a favorable outlook for outperforming the stock market, according to Bank of America equity strategist Savita Subramanian.
Subramanian highlighted structural tailwinds for active investors in 2024 that should help them beat the stock market.
“A brain drain (20% fewer sell-side eyeballs) and asset drain (40% fewer funds) from active fundamental investing to passive and private equity suggest equity markets may be less efficient and thus offer more alpha potential,” Subramanian said.
Bank of America
Passive investing now represents 53%…
2024-02-11 16:31:01
Article from finance.yahoo.com