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Active or passive investing? How choosing between got so hard
The contemporary world has created a chaotic new investment landscape where choosing passive or active investing is not so easy.
By Sam Potter of Bloomberg
The decades-long debate over the virtues of active versus passive investing shifted abruptly in 2022. High inflation, rising interest rates and economic uncertainty disrupted equity markets, ending a long bull market and sending major indexes into a spin.
That reinvigorated the fortunes of stock pickers, who by some measures beat the market at the highest rate in almost two decades. It also slowed the $11 trillion march toward passive investing, a strategy in which an investor buys funds that hold all the stocks in an index like the S&P 500.
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