Explaining The Pros And Cons Of Tactical & Strategic

There is great debate on wall street and in academia between passive and active investment management. There isn’t a clear winner. Active strategies, focused on reducing risk, may not fully participate in all the upside of a bull market. However, during major market sell-offs, passive index strategies do not have the flexibility to side step adverse events to reduce losses. We believe that there’s validity, backed by quantitative research, to incorporate both styles in a portfolio.

Source: Redwood. For illustration purposes only. There can be no guarantee that any objective will be achieved.