Nearly half of stock pickers have weathered the market downturn this year
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Everyone licks this market, except for stock pickers, believe it or not.
During the first six months of the year — which most people remember as the Hindenburg disaster lasting more than 182 consecutive days — 49% of large-cap domestic equity funds outperformed the S&P 500, according to data reported by S&P Dow Jones Indices. The Wall Street Journal Thursday. If the pace continues, energetic directors who have been ridiculed for a long time will announce their best year since 2009, leaving the rest of us wishing to share some advice.
The bubble from a pandemic tech bubble was starkly high: The S&P 500 blew a hole 20% on a year-over-year basis to the end of June, the worst six months of the year since 1988, according to Dow Jones market data. , and a complete reversal of last year’s market rally of 29% over the same period (oh how we long for the glory days we live together in a post-vaccine optimism period).
While most cried, the clever stock picker saw an opportunity. Here’s how it happened:
- Just like the last time stock producers got lucky in 2009, the market in the first half of 2022 showed high levels of dispersal, measuring changes in index stock returns. While Covid darlings like Zoom and Peloton crashed, energy stocks like Valero and Occidental soared — rewarding smart stock pickers.
- As the Fed’s steady march on interest rates slows the flow of money into the stock markets, brilliant stock pickers put their money into the right winners rather than the wrong losers.
is up down: However, there is a reason why stock pickers have become Rodney Dangerfield on Wall Street and have no respect. While novice Robinhood traders may stumble upon last year’s stock market success, a full 85% of large-cap actively managed funds have underperformed the S&P 500 over the past 20 years through June, according to Standard & Poor’s data. So it might be worth remembering that even in the best year for stock pickers in nearly 15 years, more than half of them still lost.