The rise in macroeconomic uncertainty under President Donald Trump has created a unique opportunity for active investors to beat the market by finding stocks that trade to their own tune, according to a new report from Goldman Sachs.
The investment firm says that after years of inflows into passively managed funds, the current investment environment seems conducive for "skillful stock pickers" to generate above-average returns.
"We expect elevated economic policy uncertainty under the Trump administration will create 'winners' and 'losers' and stock performance increasingly will be driven by idiosyncratic factors, such as sensitivity to wage inflation, margin pressures, and uses of cash," Goldman's U.S. equity strategist, David Kostin, wrote in a note to clients Thursday.
All of this means, that the rally in the U.S market is far from over, and there is a lot of room to grow.
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