Latest Salvo in the Active-Passive War: Stock-Bond Correlations Are Gone

  • Bernstein says a market flip will show fund managers’ worth
  • Moves pose test of active funds’ claims to outperform passive

Shift to Passive From Active Doubles Speed

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You know your 60:40 asset allocation is dead. But do you know why?

In a fresh defense of professional stock pickers from the team that brought you “passive investing is worse than Marxism,” analysts at Sanford C. Bernstein & Co. warn investors that the two-decade negative correlation between equities and debt is starting to unravel.