BULLS & BEARS: Passive investors need to consider diversification
We think the argument for diversification rests with a decision to choose “passive” investing over “active” investing. So-called active investment management is found in mutual funds where managers are actively making decisions to buy or sell stocks and bonds. It also describes the investor who builds and manages a portfolio of individual securities. Passive management describes index investing. It amounts to an investor’s deciding he wants exposure to the markets but does not want to be bothered with selecting and…