Active Investing vs. Passive: Truth & Myth
Despite advertising to investors to use a passive buy-and-hold approach to stocks, data shows this is poor way to generate wealth even long term. The random nature of stock prices means that inflation-adjusted returns significantly underperform investment targets and exposes ...
Despite advertising to investors to use a passive buy-and-hold approach to stocks, data shows this is poor way to generate wealth even long term. The random nature of stock prices means that inflation-adjusted returns significantly underperform investment targets and exposes investors to greater risk than they realize.
Active trading is NOT stock picking or “day-trading” rather it is the use of equity options to reduce the cost of owning any given investment, which reduces risk and increases the probability that any given investment will increase in value. Dylan Ratigan talks about this strategy and how it has yielded a 16% higher inflation adjusted returns since 2000, with 2/3 the risk of a passive fund.