FYI: Stop me if you’ve heard this one: choppy markets are generally opportunities for active managers to shine.
This is in part, the old saw goes, because market churn tends to create greater dispersion and lower correlations between stocks. Dispersion refers to the gaps between the best- and worst-performing stocks, while correlation refers to the tendency for stocks to march in unison. Volatility can widen out dispersion and lower correlations, which in turn allow the acumen to bottoms-up fundamental analysis work its magic. Right? Sort of.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2016/04/04/u-s-large-cap-stock-funds-just-had-the-worst-quarter-since-at-least-1998/tab/print/
