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Don’t Call This A Comeback For Active Mgmt

FYI: With each new article reporting on the exodus of investor flows out of active and into passive funds (see “The Dying Business of Picking Stocks” published in the Wall Street Journal), we are reaching the maximum pain point for investors who have stuck with active management despite the perennial underperformance versus passive, market-cap-weighted benchmarks.

As is often the case, the moment the last investor throws in the towel on a strategy is the moment the maximum pain point threshold has been reached followed by a turnaround in that strategy’s fortunes.
Regards,
Ted
http://www.etf.com/sections/etf-strategist-corner/dont-call-comeback-active-mgmt?nopaging=1d
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