Passive managers can point to data that supports their position; that "buying the market" through low-cost indexing produces superior performance over time. Conversely, proponents of active management argue that in a world of less-than-perfect information, thoughtful analysis provides an "edge" over indexing. Both generally agree that even when successful, active management has never been easy, and the U.S. election has introduced additional uncertainties. Marketplace volatility has increased post-election, producing dislocations that historically have been beneficial for an active approach. Will Mr. Trump's tweets lend themselves to a predictable pattern, or simply be ignored by the marketplace?

Source: Forbes January 11, 2017 18:07 UTC