Passive v Active – What is The Best Strategy

Active or Passive? The Answer Might Surprise You

A lot of investors proudly call themselves “passive” or “active.” But in reality, the smartest approach isn’t about picking a label—it’s about understanding the market itself.

When valuations are low—like after big corrections—history shows the odds of markets going higher increase dramatically. That’s when a patient, passive approach can work best.

But when the market is hitting record highs, the probability of a pullback also goes up. In those times, an active approach—taking profits quicker and managing risk—is often wiser.

The key is staying flexible. Rigidly sticking to one style means you’re right about half the time…and wrong the other half.

It’s not about you—it’s about what the market is telling you.