Passive investing is the new ''fad' for accumulating wealth but that doesn't necessarily mean it's the best. What do you think?
You know what's my view on this? I think you need a bit of both I've never been
one of the people that say let's put it all into passive because it's really
cheap, cheap as chips and off we go. I've never taken the view that it
should all be in active management because the active manager
will always outperform the market because that's not true it's about a balance
between the two.
Beauty lies in the action of living your everyday,
freedom is knowing it'll still be there tomorrow.
I think it's really important that you have that degree of separation because
when you're in the pit and you can potentially get biases
or feeling as though you're right because you've had a couple wins in a row
and then also you're emotionally invested in it so when things go down
that's a direct impact on your income so you likely to take greater risk.
In terms of a dollar cost averaging implementation sort of
thing you could potentially just save into the fund every month that would be
a way to implement the dollar cost averaging, but, there's actually quite an
interesting debate at the moment going on between, well I think it was initiated by
the Financial Markets Authority, and it was talking about active versus passive.
So I'm wondering if you could talk about the pros and cons of either?