This week’s Barron’s had the same argument for active portfolio management in 2014 in two different articles; the weekly interview which was with Robert Ewing from Oppenheimer and ETF Focus column. The basic idea was that correlations are in the process of moving from very high to not so high. Ewing noted that this started in the middle of 2013. If correlations are receding then bottom up performance from companies like earnings growth, revenue growth and balance sheet management can serve to differentiate returns.
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