This week, an article from Morningstar perfectly encapsulates the central thesis of this investment newsletter:
Around 40% of active funds generated higher net returns than their benchmark indexes in 2019, 53% before fees. This does represent an improvement from a dismal 2018 campaign when fewer than one third of active funds beat their bogies net of fees.
This isn't that surprising. Last year was a great year for the market, creating a, "rising tides lift all boats" scenario. However, what about the possibility of repeating that performance (emphasis added)?
Finally, we took a closer look