From where I sit, the biggest problem with passive investing (that no one is talking about) is that it does not protect your capital when markets fall. I speak to countless investors (big and small) and have seen way too many accounts decimated during bear markets. I also see accounts flourish during bull markets but it breaks my heart to see people lose everything because a manager (active or passive) did not prepare for a bear market.
From where I sit, the biggest problem with passive investing (that no one is talking about) is that it does not protect your capital when markets fall. I speak to countless investors (big and small) and have seen way too many accounts decimated during bear markets. I also see accounts flourish during bull markets but it breaks my heart to see people lose everything because a manager (active or passive) did not prepare for a bear market.
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