American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
The world's second biggest economy is past a point where it cannot ignore its enormous debt anymore, according to an analyst.China Economyread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
As demand for lab monkeys continues to rise, U.S. scientists are reporting delays in research projects because they can't obtain enough animals, according to the National...Politicsread more
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
It turns out there is a way to succeed as a stock picker in this difficult market: Just pick the stocks the pros don't like.
Active fund managers have been getting clobbered this year, with just 16 percent outperforming basic indexes in 2016. That inability to generate alpha has played a large part in investors flocking to the exits from traditional, actively managed mutual funds and plowing money into passive exchange-traded funds, most of which track benchmarks like the .
In all, $221.7 billion has fled actively managed funds over the past 12 months, while $174.8 billion has gone to their passive counterparts, according to Morningstar.
For those willing to keep playing in the stock-picking arena, though, there's a fairly simple and intuitive solution. The least-loved stocks by active managers have outperformed the most-loved by 13 percentage points in 2016, according to Bank of America Merrill Lynch, providing investors a reason to steer clear of the herd mentality that too often permeates investor psychology.
Pitting most-loved against least-loved has been a solid strategy for the past several years, but too often gets ignored in a momentum-driven market.
In this market, going with a least-loved strategy means selling heavily owned positions like Activision Blizzard, NetApp, Broadcom, salesforce.com and Viacom, and buying underowned companies including People's United Financial, Leggett & Platt, Alliant Energy, Brown-Forman and Apartment Investment and Management.
To be sure, stock picking continues to be a rough game.
Hedge funds saw core performance rise 6.4 percent in the third quarter, a move generated in tandem with the $2.9 trillion industry cutting its stock exposure and amping up its ETF holdings by $8.5 billion in the quarter, which BofAML said is a record pace.
Stock exposure generally is at a three-year low. Hedge funds also rotated out of financials and consumer discretionary stocks.