The Blurry Line Between Active & Passive

My latest post for Alpha Baskets looks at a well written article that I think asks the wrong question.

From the post;

The first bullet point about not market timing is the one that isn’t active but could be. Rebalancing is arguably an active endeavor. A truly passive investor would let his allocation drift wherever (a point made by Cullen Roche). You may not market time but you might time yourself. There is a school of thought that says a year or two before you plan to retire you should reduce equity exposure to reduce the impact of the bad luck that goes with a bear market starting six months after you retire. If that resonates with you then that is an active endeavor.

Please click through to read the entire post.

A BMW in front of my gym from the other day

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Roslyn, WA, aka Cicely, AK where Northern Exposure was filmed, picture taken in 2011

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Skateboard rack in San Diego

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1 Comment

  1. Good article. Thanks for sharing

    Reply

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