Stock picking may be about to make a comeback. After two years when fund managers were thoroughly disheartened by the tendency of equities to move in line with each other, measures of this - their correlations - have tumbled.
This week the rolling 50-day correlation of stocks in the S&P 500 with the index hit its lowest since June 2007, falling from 23-year highs last summer. This is another sign that markets are getting back to normal. Companies are once again being valued on their prospects, not just the global economic outlook. This gives fund managers an opportunity to shine - or muck things up.