Why higher rates wont spark a return of stock picking
Over the past decade, many market participants have been quick to attribute the poor performance of stock-picking strategies to the low interest rate environment. Essentially, the argument goes, central bankers have driven up the prices of all assets, creating a situation where markets no longer distinguish between "good" and "bad" stocks, making it impossible for wise stock pickers to show their worth. Our article examines whether this argument stands up to scrutiny.