Constant proportion strategies (CPPI) outperform when stock market reversals are not expected because as the market increases in value the CPPI investor will invest in a higher proportion of stocks in their portfolio. The buy and hold investor will do nothing and the proportion of stocks in their portfolio will increase but not as high as the actively managed CPPI portfolio. The constant mix investor will have to shift out of stocks as the market increases to maintain a constant proportion of stocks as the market fluctuates. If the market trends downward without reversing the CPPI investor will be the first one out of stocks as the market continues its downward slide. | 
