Will You Do Better as an Active Investor or a Passive Investor?

Russ Harlan Wealth Management

It’s one of the most contentious debates in investing. Perhaps a more important question: which approach will be superior over the long term, active or passive investing? Active investing is when you proactively move assets (buying and selling) with the goal of beating relative market performance as measured by an index. Relying on trend analysis and your past experience, you seek to buy individual stocks, sectors and/or fund managers when they appear low with the plan to sell them when they’re higher. If you guess correctly, you have the potential for significant returns. But if you’re wrong, the results can be costly. Passive investing is when you buy a diverse mix of assets and reallocate your funds only when rebalancing …