We are in a passive investing bubble.
I am not sure how it ends, who and what the pricks are and how bad it really is, but you should NOT just set and forget. Tony Robbins says you can, if you buy his book. He the guy who said GET OUT of the markets in 2010.
I am all for ETF’s. I am all for investing made easier and diversification. I am all for the cost cutting associated with robo investing and advising.
But – I am also for paying top dollar for financial advisors. I am all for speculating, trading, investing, even done actively.
This is the era of the mobile web and social mentorship. Anyone with savings should be allowed to choose.
Obviously, people are doing this, but it is not making it to the cover of major business publications. If it does, it is mocked. AngelList (I am an investor) had a banner year. TAKE A READ. I am also an investor in Crowdability, whose founders want to create a Morningstar of Crowdfunding. Chris Sacca turned $6 million into more than a Billion in FOUR years.
I have covered the topic of active investing many times on this blog since I started it in 2006. My blog itself is really just a chronicle of active investing. Two recent posts are here, and here.
My pal Josh Brown reads Barron’s so I don’t have to. The cover has always told me more about the markets than anything inside. This week’s is humorous:
Every year, the same prayer. RT @hmeisler: Barron's: "just say no' to indexing or at least hello to stock picking. pic.twitter.com/3qoW7TuIbF
— Downtown Josh Brown (@ReformedBroker) January 10, 2015
Josh says ‘every year the same prayer‘. I strongly disagree with his sentiment.
I don’t prey.
I have hoped for sure. I have rooted. I have dug in. I have wasted time. I have had a bucketful of zero’s.
But, I am grateful that I have never handed off my money to be ‘passively’ managed. There is just no such thing.
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