As central banks have begun to normalise interest rates and reverse the Quantitative Easing liquidity gusher, we are seeing more rational valuations in markets, less indiscriminate buying, more indiscriminate selling, less money flowing to indexing - all of which make this a great market for stock pickers.

Such is the current narrative from active managers, and it may well be true. But, we should consider what is meant by “a stock-pickers market”. One interpretation can be best described as “alpha grows on trees” while the other is “over the next few years, really good ...