Equity investing for a new era: The return of alpha
The end ― and beginning ― of an era
Capturing the essence of the new market regime requires context and reflection on the dynamics that existed prior to the current moment. The years following the 2008 Global Financial Crisis (GFC) were marked by 1) fragility and 2) unprecedented accommodation. Households and businesses were recovering from a deep recession and fallout from financial and corporate failures. For its part, the Federal Reserve (Fed) cut rates to near zero and implemented quantitative easing for the first time to stimulate the economy and help consumers and businesses heal, propping up markets in the process.
Fast forward to 2020 and the COVID-19 crisis. It was a time marked by a global economic shutdown and restart…
