Canadian Money Forum banner

1 - 6 of 6 Posts

·
Banned
Joined
·
1 Posts
Discussion Starter #1
For quite awhile there have been two major investment philosophies.

  • Prudent (passive) investing - This philosophy presumes that no one can out smart the market. So, instead of fighting the market by trying to guess when to get in and out, you ride with the market and focus on the quality and diversification of your investments. You would be looking at very low fee based investments as well as a broad sampling of the entire market (e.g. index funds).
  • Active or Market Timed Investing - This philosophy presumes that you can out smart the market if you pay close attention to past and current trends. Of course under this philosophy, you will need to time both your exit and re-entry to the market correctly to keep your money on the up-swing.
Each group is passionate about defending their group.

The prudent group will say that if you look back over time, you will see that there is more money to be made by rolling with the market than fighting the market.

The active investing group will say that the market is changing all of the time and that you need to adapt to this change.

-- Chet Scott
 

·
Registered
Joined
·
3,197 Posts
I'm sure the believers in active investing will quibble with your addition of the adjective "prudent" to describe passive investing. But otherwise, what is your question? This is old news.
 

·
Registered
Joined
·
3,267 Posts
Hey, lets discuss the abortion issue instead so that it doesn't get too violent and we have a better chance of changing the other sides opinion.
 
1 - 6 of 6 Posts
Top