FYI: Active fund managers faced with dwindling liquidity and frequent blowups in individual stocks should use exchange-traded funds to navigate the market tumult, Goldman Sachs says.
That might be a bitter pill to swallow for stock pickers, who have been steamrolled by the rise of passive investing. But Goldman strategists led by Jessica Binder-Graham point out in a research note that some ETFs are trading in almost lockstep with their equity holdings while at the same time have much more liquidity, making them money savers in the current market environment.
Regards,
Ted
https://www.fa-mag.com/news/goldman-steers-stock-pickers-toward-etfs-as-liquidity-evaporates-45175.html?print
