The shift reflects how hard it has become to shine just by picking winners and losers from the broad stock market as information edges get scarce.
Investors are fleeing actively managed stock funds in favor of index funds. Actively managed bond funds may be next.
Wang’s speech came as Trump officials discuss ways to limit U.S. investors’ portfolio flows into Chinese stocks, disrupting global index funds.
“The weakness in the economy, in my opinion, is directly attributable to the president’s dialogue on tariffs,” says Leon Cooperman of Omega Advisors.