From Time:

Investing in 2024: Active vs. passive. Financial giants like UBS and BlackRock suggest 2024 will favor active investors over passive ones. Despite possible gains, active investing is risky. Passive investing, a “set it and forget it” strategy, is safer. Index funds lost favor in 2020, and finance experts advise keeping some while favoring active investments in 2024. Ads by Money.

Active investing, depicted as a “beat the market” strategy, will be rewarded in 2024 due to impending rate cuts by the Fed and favorable macroeconomic factors. For the average investor, this approach is not recommended as historical data shows few active managers beating the market. However, actively managed investment funds offer a way to participate. Activated exchange-traded funds are also becoming increasingly popular among retail investors. Ads by Money.

Active investing is mostly not recommended. With the average active fund not beating the market in recent years, it’s best to hold index funds. However, proactive financial advisors can advise on active allocation instead of active stock picking. Ultimately, for individuals, it’s safest to use an investment advisor for active investing. Newsletter for personal finance updates. Featured topics: Bitcoin, tech stocks, and the 2024 investing outlook.



Read more: Active Investing vs. Passive: Best Strategies for 2024