Right now the markets seemingly are hitting new highs each and every day but under the surface there is quite a different story going on. Typically they say that a rising tide lifts all ships but we just aren't seeing that right now. There are different stocks that are leading and some that should be leading (or at least headed higher) that are not. With this in mind there is greater opportunity for the active trader or stock picker if you will.
So what is an active trader? Well there has been this long debate on who fares better in the long run. Is it the passive, buy and hold forever investor, or is it the active investors? An active investor is one who enters and exits positions based on their strategy attempting to generate their long term returns in pieces while a passive investor typically believes that buying a diversified portfolio and holding for the long term is the best way to achieve those market returns. With the disconnect in bond pricing and the major indices on their own paths lately the active investor has the upper hand.
This will take some time to play out though. While stock picking has been beneficial recently, you still have to pick the right stock. If you missed out on any of the "FANG" stocks move this year then the passive investor still has the upper hand. Miss healthcare, tech, or the most recent run in the financial sector? Then you are better off as a passive investor.
There also is a need for the active investor to be attracted to this game. It is an approach that involves research and the desire to actively invest. As the media reports that active investors are doing well right now keep in mind that those are people who want to actively invest. It would not be wise for the passive investor to change his or her strategy just in search of greater returns.