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Hidden Benefits of Active Management | Truth Or Skepticism

Jan 28, 2016

By: Mike Butler

Tom & Dylan are back to discuss all the wonders of active investing. Check out the sneak peek below, but don't forget to watch the full segment here!

CORPORATE ACTIONS

Instead of investing in new factories, resources, etc— they invested in buybacks, mergers and depositions.
— Dylan Ratigan

Tom & Dylan dissect what corporations have been doing for some time, and how that puts the market in an interesting position. How can an active trader make the most of this? Tom reveals the returns prior to fees in a passive index account over the past 15 years. It didn't make anyone rich, they just didn't lose money. Is that really something to strive for?

This is why I’ve been arguing to take control of personal finances. It’s not to sell strangles in XYZ, it’s to open our eyes to what’s happening in the world, and make us more financially literate.
— Tom Sosnoff

WHY WE ACTIVELY MANAGE

Even those who manage money (professionally) have no idea what they’re doing.
— Tom Sosnoff

Dylan prods Tom on professionally managed funds. He admits he has a ton of information now at his fingertips, but what are active investors to do with it? Are the majority of people gun shy? How would making 10 trades compare to someone that has never traded before?

Don't forget, this is just a short preview, so be sure to check out the full episode on tastytrade.com!



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