Why a double-dip in US markets could be on the cards

Managers must perform well in boom and bust environments

During this pandemic-induced recession and global stockmarket volatility, we have seen a trend of fund managers boasting positive returns in comparison to global indices and the majority of funds.

However, many of these are the same fund managers who hesitate to do the same during a bull market. But why? There is an important distinction that exists between performing well during a bust and achieving consistently positive returns during both a bust and a boom. Even though the market is cyclical, we find that many fund managers tend to call the end of these cycles toward the end of every boom. Quotes such as: "Changes to the market have seen an end to the boom/bust cycle" or "The market is doing so well, we do not see an end to this any time soon" are just a flavour the rhetoric...