Hunting for treasure in a down market

With the prospect of a protracted downturn becoming more likely, should investors focus on active or passive styles of management?

It is an old debate, the one about active versus passive investing. Both sides have an opinion and can argue passionately in favour of why their particular form of investment works best, and how best to hunt for treasure. Companies with a full product range are at an advantage and, as the adage goes, it is not what you have but how you use it. It is a bit like politics - you know both sides have to take an entrenched position, partly for appearances, but there is usually a third way. Passive managers generally believe it is difficult to beat the market. Therefore, they essentially offer a...