JPM's Santos Says Now Is the Time for Active Management

The video discusses a potential market shift from growth to value, analyzing sectors within the value style, such as utilities and banks. It highlights the debate between active and passive management strategies, emphasizing the importance of active management in the later cycle of the US market. The discussion includes the role of interest rates and net interest margins in financial sectors, and the need for tactical shifts in investment strategies.

What is a key factor affecting the performance of interest rate-sensitive sectors like utilities?

• High inflation rates

• Interest rate changes

• Government regulations

• Technological advancements

Which sector is expected to perform well within the value style over the next 12 months?

• Consumer goods

• Banks and financials

• Technology

• Utilities

What is a major concern for banks during the current earnings season?

• Increased competition

• Rising operational costs

• Credit volume and net interest margins

• Decreasing stock prices

In the debate between passive and active management, what is a suggested advantage of active management?

• Lower costs

• Higher returns

• Simpler strategies

• Better risk awareness

Why is it considered a good time for active management in the current market cycle?

• To focus on emerging markets

• To pick quality companies and manage risks

• To reduce investment costs

• To follow market trends