Wall Street is not optimistic about markets in the year ahead. While inflation is down, it's still well above the Federal Reserve's target of roughly 2%, so the U.S. central bank is expected to continue raising interest rates. Many are predicting that the U.S. economy will enter into a recession. In the latest sign of a bearish attitude towards the year, many large investment banks have been instituting significant staff layoffs. More recently, Bloomberg has reported that Goldman Sachs is laying off as many as 3,200 employees, which is 6.5% of the 49,100 employees the firm had in October. This is after Goldman had already cut several hundred jobs in September. So, it makes sense to have some element of active management in one's portfolio. Plus, active managers with greater resources and greater scope benefit from economies of scale, which can often translate to better returns. 'Actively managed equity funds sort through the broader universe of securities, choosing only the ones the best fit the investment criteria, rather than owning all the companies in the investment style tilted toward the past winners,' said Todd Rosenbluth, head of research at VettaFi. Active ETF ChannelT.