Active vs Passive investing: $100 trillion money managers confront the end of the bull market era
Money managers with over $100 trillion in assets are grappling with the end of a prolonged bull market.
Money managers with over $100 trillion in assets are grappling with the end of a prolonged bull market.
The tech-heavy Nasdaq-100 index experienced a significant rally in the first half of 2023, driven primarily by a handful of technology giants.
A bear market’s beginning is easy to identify: by the standard definition, it’s a 20 per cent decline, accompanied by a general feeling of dread. Calling the end of a bear is harder.
If you believe that interest rates have peaked and that the US will avoid a recession, it’s reasonable to contemplate whether the worst may be over for the Nasdaq 100.
The bear case. Just as with yesterday’s bull case, we don’t necessarily endorse all of the arguments that follow.
Roubini expects the US and global recession to last all of 2023, depending on how severe the supply shocks and financial distress will be. During the 2008 crisis, households and banks took the hardest hits. This time around, he said corporations, and shadow banks, such as hedge funds, private equity and credit funds, “are going to implode.”
If you’re still holding on despite the wild ride that global markets presented in 2022, you might want to pat yourself on the back.
Financial journalists know that something has probably gone badly wrong when they have to learn a new acronym. This week it was LDI.
The US has been raising interest rates to slow down its economy to bring down inflation. Yesterday, it announced a rate for July of 8.5%.
The Nasdaq Index touched 16 000 that month. US markets are about to record their worst first half of any year since 1972.