“Buy and Hold” No More: The Resurgence of Active Trading
Frankly, I think passive investing has ruined the fundamentals of investing and in part responsible for the poor financial health of our economy.<p>While the idea behind passive investing may seem like a good one, people often forget it&#x27;s a double edge sword. By this I mean, when you invest into an ETF or index fund, that money in turn goes into everything underneath it. All too often that money isn&#x27;t invested in the underlying equities in any intelligent way, and so some of it ends up in ridiculously bad equities. Because of this, there are complete zombie companies that are worth multi billions today, which sell no more than 2 widgets a year and haven&#x27;t seen growth for nearly a decade... They are only worth so much because money keeps flowing into them from being apart of a hot ETF.