Which market? What country? What assets?
Are you allocating money to Pokémon cards? Why or why not?
PS: all investing is active management. full stop.
Are you allocating money to Pokémon cards? Why or why not?
PS: all investing is active management. full stop.
You can read about the investment strategy, but basically it comes down to risk adjusted returns over long periods of time.
It will become abundantly clear why Pokemon cards are not part of that strategy.
We probably have different definitions of active investing. I take my definition from Wikipedia: https://en.wikipedia.org/wiki/Active_management
In my mind, another way to divide the two is about assumptions about efficiency. Passive investors assume that the market is generally efficient, and do not try to exploit inefficiencies to generate returns. Active investors generate returns from perceived inefficiencies (information asymmetry, etc).
You must take responsibility for what and who gets empowered by your hard earned wealth. There is no other way around it.and a single datapoint leaving the system won't fix it. It needs to be a collective action.
Sadly, (and I hope I am proven wrong) we aren't so great at that.
Index selection is active management.
The return on investment there leaves me at a loss for words.