Active investing and "market timing" are the same thing. That's quite obvious.
What isn't obvious and is the primary reason passive investing has worked - is after hours appreciation. In the past decade if you bought everyday at the close and sold at the open, you'd come out far ahead of buying at the open and selling at the close. Secondly, the market spends the majority of the time regaining what it lost.
Passive investing depends entirely upon when you have enough money to invest and when you retire. Over the past 2 years the market is up 7% with an 18% drawdown. By any measure of risk adjusted performance, that's terrible.
Proponents of passive investing will simultaneously point at history and say wait and see while claiming various strategies' backtests (or out of sample tests) aren't proof of future performance.... Passive investing will get harvested, it's only a matter of time
What isn't obvious and is the primary reason passive investing has worked - is after hours appreciation. In the past decade if you bought everyday at the close and sold at the open, you'd come out far ahead of buying at the open and selling at the close. Secondly, the market spends the majority of the time regaining what it lost.
Passive investing depends entirely upon when you have enough money to invest and when you retire. Over the past 2 years the market is up 7% with an 18% drawdown. By any measure of risk adjusted performance, that's terrible.
Proponents of passive investing will simultaneously point at history and say wait and see while claiming various strategies' backtests (or out of sample tests) aren't proof of future performance.... Passive investing will get harvested, it's only a matter of time