Active Versus Passive Investing: Are These Really The Only Two Options?

If you believe that markets are efficient, i.e., that markets’ prices have incorporated ALL information that could impact the price of a security, then you likely should be a passive index investor. Passive investing is a “buy and hold” strategy where money is invested in securities proportionally to their representation in a market capitalization weighted index.  Since Apple is the most valuable company in the U.S., a passive investor will generally hold more Apple than any other U.S. st...