Investing strategy performance tends to cycle between profits and losses. Since 2009, simple buy and hold strategies perform well for little cost. Over the same period, active strategies generate profits but underperform the cheap buy and hold strategy.

As strategies perform well, it attracts more people to it. When it reaches critical mass, performance tends to decline. I don’t think it’s such a good idea to predict when the performance will change course but this seems to be the way markets work.

Active strategies tend to perform better during sideways and down trends. We’ll see when the trend changes and how it all plays out.