Nice piece about the risk of passive investing–
The main point is by being passive you are overweighting tech which is likely overvalued.
Good point but I would not worry so much as we are tech economy now and as long as you hold for a very long term, you would be fine.
I have some money in market ETFs but the majority of my money is in active investing.
I teach financial statement analysis and valuation so I’d better have some edge. Eat my teaching I suppose.
I also enjoy reading and learning about firms. But what I love the most about markets is that despite the manipulation, you still kind of figure out whether you were right or wrong quite quickly.
In contrast, doing research and publishing a paper takes much longer.
Active investing is really hard and takes a lot of time and effort. Thankfully, I focus on small caps that most funds would ignore and I have ton of cash. So it has sort of worked out. But it has only been few years since I started really making some profits. Also, I am far from beating the market with all the craziness. Yup, NASDAQ easily beat me the between 2017-2019- 2020 if I bought more at the crash, I would have done much better.
Now in 2021 so far, I am doing better than the indices. Swing trading really helping out a lot.
My longs have suffered as gold dropped. But TPL is crushing it-
Looking for a day to be more passive and less swing.
Nothing wrong with swing trading, it just takes more time and planning.
I wish I could spend more time on investing and research but family is the most important. So no big changes until my son needs less attention.
Very thankful for all God’s blessings 😀
Thank You Jesus for all Your love and mercy. Let us be more cheerful and thankful every day Amen!
Rejoice at all times. Pray without ceasing. Give thanks in every circumstance, for this is God’s will for you in Christ Jesus.
1 Thessalonians 5: 16-18
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