I disagree with the notion that active management adds value in so-called "less efficient" markets. A passive investment strategy is not dependent on whether (or to what degree) markets are efficient. Instead, it is based on arithmetic: investors, on average, earn market returns less expenses. Therefore, passive investing is a winning strategy even in less efficient markets. I wrote about it here: Efficient Market Theory and Indexing.
The current bear market shows that active managers do not always outperform by nimbly switching out of stocks into cash or fixed income. The recent SPIVA reports comparing active management to indexes show that in this bear market, the probability of active managers outperforming is only slightly better than a coin toss.
The current bear market shows that active managers do not always outperform by nimbly switching out of stocks into cash or fixed income. The recent SPIVA reports comparing active management to indexes show that in this bear market, the probability of active managers outperforming is only slightly better than a coin toss.