In the years following the financial crisis of 2008-2009, due mostly to quantitative easing (or QE… most people know QE as “bailout”), stock prices became highly correlated. This made it difficult for investors to gain alpha through stock picking. Since the US Federal Reserve announced the end of the QE programme, stocks are starting to become less correlated. Analysts expect stock correlation to drop even more and stock volatility to increase in 2015. Stock pickers (the good and the lucky) may be picking up alpha as well.
Read the report on CNBC.