I heard the term
Stock Pickers Market
today. What does this phrase imply? What other kinds of Markets are there?
According to this site,
The dispersion among individual stock returns varies over time. Low dispersion occurs when all stocks tend to move in the same direction, and high dispersion occurs when stocks tend to go their separate ways. It’s during a period of high dispersion we hear Wall Street gurus proclaim: “It’s a stock picker’s market.” The inference is that it’s easier to beat the market during these periods. That’s not true.
Basically, a stock pickers market is a time where it is easier to select individual stocks which will outperform the rest of the market as a whole. When this actually occurrs, however, is much debated.