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“Buy and Hold” No More: The Resurgence of Active Trading

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Re: “Buy and Hold” No More: The Resurgence of Active Trading

#271

Post by tim333 »

freetime2 wrote: post #131
danlugo92 wrote: post #125

Earlier quoted context omitted.

What 3 ETFs do you invest on?

SCHB, SCHF, and SCHE. That's a bit of an oversimplification because I do have some other assets I've picked up over the years. But the bulk of my net worth is invested in those 3. If I were to start over again I might even just hold SCHB, which I feel has enough international exposure to make SCHF and SCHE somewhat redundant, while also being more efficient for taxation purposes.

There's a potential tax advantage in splitting into different holdings. If you need money you can sell the one that hasn't gone up thus delaying or avoiding capital gains tax.

Re: “Buy and Hold” No More: The Resurgence of Active Trading

#273

Post by tim333 »

It's not really mentioned in the article but the rise of speculative trading is fairly normal at the end of a bull market. People see their friends stocks have gone up and figure they can get in on that too. (Jeremy Grantham going on about such stuff https://youtu.be/RYfmRTyl56w?t=195)

Re: “Buy and Hold” No More: The Resurgence of Active Trading

#274

Post by LatteLazy »

baq wrote: post #38
lupire wrote: post #3

Article misses the point (perhaps due to their capital investments) that the resurgence in active trading is almost entirely just gambling, but exempted from casino regulation. Also, saying "no more" to refer to a blip fad is a ridiculous healdit.

except it isn't: if enough gamblers stick to one ticker, they can break the market. options aren't roulette and stocks aren't blackjack. casinos don't have this failure mode. gamestop was the example of what happens in the limit - only the DTCC prevented a global financial crisis as a circuit breaker of last resort.

People broke the market on GME, but then they got rinsed for it. Hardly a win...

Re: “Buy and Hold” No More: The Resurgence of Active Trading

#275

Post by LatteLazy »

Rury wrote: post #217

Frankly, I think passive investing has ruined the fundamentals of investing and in part responsible for the poor financial health of our economy. While the idea behind passive investing may seem like a good one, people often forget it's a double edge sword. By this I mean, when you invest into an ETF or index fund, that money in turn goes into everything underneath it. All too often that money isn't invested in the u…

The great thing about markets is they reward people who correct them. Pick a stock you're sure is bad and short it, you'll do everyone a favour and make a tidy sum...

Re: “Buy and Hold” No More: The Resurgence of Active Trading

#276

Post by jamesmark »

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Re: “Buy and Hold” No More: The Resurgence of Active Trading

#277

Post by jamesmark »

hogFeast wrote: post #147
xiphias2 wrote: post #53

Maybe a16z doesn't like it, but ,,buy and hold'' active investing works quite well. Passive investing means doing what your bank advisor suggests. People are starting to realize that those advisors may not make smarter decisions on where the world is going than the people themselves.

I don't understand how this view is still controversial. I worked in fund management: I have never seen people who were so overpaid (myself included) for doing so little. Fund managers are a net negative cost to the economy, and they earn fees to do it. Most of them, particularly personal advisors, understand nothing about investing that most people couldn't learn themselves (the only exception are the big wealth man…

Hello am mark barger from USA, i james mark . to say a very big thanks to Dr Macaulay for saving my soul from dying of Herpes Virus,i have being suffering from this Herpes Virus for two years now, i saw Dr Macaulay email address on a comment of someone who he has helped i was so encourage with the testimony been shared, i took the man email address and also contacted him for help he replied me and ask for some of my details which i provided and also ask for some useful Materials Needed for the herbal herbs which also did not cost me much, i provided all he needed from me to God be blessed this Dr prepared a parcel and send it to me followed with the instruction on how to take the herbal herbs medicine for 14 days. So surprisingly after taking the herbal herbs i went to the hospital for checkup to my greatness surprise my result came out (negative),i will never stop sharing my testimony of how i was cured from my Herpes Virus by Dr Macaulay you can also write him for any type of help you may need (Via:Dr.Macaulayherbalhome@yahoo.com) here his whatsapp https://wa.me/message/HJO6BWJEP4CFJ1mobile number (+2349067522465) for help....

Re: “Buy and Hold” No More: The Resurgence of Active Trading

#278

Post by wrycoder »

vomjom wrote: post #239
Thorrez wrote: post #232

Earlier quoted context omitted.

>the companies who use debt to buyback their shares are whats driving the market. Every dollar they spend on their stock is then magnified 100x by the big passive funds, and both 1 & 2 have no agency other than to try to get swept up in the winds. I've always found stock buybacks intriguing and confusing. Here's a hypothetical scenario that seems to go against what you're saying: Company A buys back $1 work of stock.…

market cap = book value + discounted future cash flows = share price * number of outstanding shares When you do a buyback, the book value drops (company loses cash), but the discounted future cash flows remains unchanged. The number of outstanding shares also drops. The net result is the stock price increases as a company accumulates cash and uses it for buybacks because the number of outstanding shares drops. Anothe…

Buyback increases the value of the outstanding shares, which is great for those in the company with stock options.

Re: “Buy and Hold” No More: The Resurgence of Active Trading

#279

Post by jamesmark »

xyzelement wrote: post #60

I am a hedge fund guy who invests his own $$$$ passively so make of this what you will. There will always be a mix of active and passive. Fundamentally - passive only works when it follows smart active. Actives do expensive research and trade against each other to arrive at the consensus price. Passives trade at that price for "free." Since both get the same price on average but passives incur no cost, they win on av…

Hello am mark barger from USA, i james mark . to say a very big thanks to Dr Macaulay for saving my soul from dying of Herpes Virus,i have being suffering from this Herpes Virus for two years now, i saw Dr Macaulay email address on a comment of someone who he has helped i was so encourage with the testimony been shared, i took the man email address and also contacted him for help he replied me and ask for some of my details which i provided and also ask for some useful Materials Needed for the herbal herbs which also did not cost me much, i provided all he needed from me to God be blessed this Dr prepared a parcel and send it to me followed with the instruction on how to take the herbal herbs medicine for 14 days. So surprisingly after taking the herbal herbs i went to the hospital for checkup to my greatness surprise my result came out (negative),i will never stop sharing my testimony of how i was cured from my Herpes Virus by Dr Macaulay you can also write him for any type of help you may need (Via:Dr.Macaulayherbalhome@yahoo.com) here his whatsapp https://wa.me/message/HJO6BWJEP4CFJ1mobile number (+2349067522465) for help....

Re: “Buy and Hold” No More: The Resurgence of Active Trading

#280

Post by jamesmark »

ItsMonkk wrote: post #149
xyzelement wrote: post #60

I am a hedge fund guy who invests his own $$$$ passively so make of this what you will. There will always be a mix of active and passive. Fundamentally - passive only works when it follows smart active. Actives do expensive research and trade against each other to arrive at the consensus price. Passives trade at that price for "free." Since both get the same price on average but passives incur no cost, they win on av…

So I've been trying to work this out. Previously I understood the idea "The passives are simply the average of the actives". So even if you had 99% passive, so long as the actives were doing their homework the system would work, but as you said you need to watch for exploits. But then I had the question: When the world has gone passive, who is left as an active investor? 1. Wallstreetbets users who do poorly on avera…

Hello am mark barger from USA, i james mark . to say a very big thanks to Dr Macaulay for saving my soul from dying of Herpes Virus,i have being suffering from this Herpes Virus for two years now, i saw Dr Macaulay email address on a comment of someone who he has helped i was so encourage with the testimony been shared, i took the man email address and also contacted him for help he replied me and ask for some of my details which i provided and also ask for some useful Materials Needed for the herbal herbs which also did not cost me much, i provided all he needed from me to God be blessed this Dr prepared a parcel and send it to me followed with the instruction on how to take the herbal herbs medicine for 14 days. So surprisingly after taking the herbal herbs i went to the hospital for checkup to my greatness surprise my result came out (negative),i will never stop sharing my testimony of how i was cured from my Herpes Virus by Dr Macaulay you can also write him for any type of help you may need (Via:Dr.Macaulayherbalhome@yahoo.com) here his whatsapp https://wa.me/message/HJO6BWJEP4CFJ1mobile number (+2349067522465) for help......
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