Paragon Wealth Management’s Advisors Debated Active vs. Passive Management

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Paragon Wealth Management's wealth managers discussed their opinions about active vs. passive wealth management on their blog, Money Managers Live. They talked about the difference between active vs. passive money management, which strategy is doing better right now and which has done better in the past, which strategy does better in volatile markets, and the disadvantages and advantages to each strategy.

Chief Investment Officer, investment, investing

Nathan White, Paragon's Chief Investment Officer

“For the last year to year and a half passive strategies have done better,” said Young. “It is interesting as you look over time, it switches back and forth and depends on the effectiveness of the active manager.”

Paragon Wealth Management’s wealth managers debated active vs. passive investing in a video on their blog, Money Managers Live, Thursday.

Each week Paragon Wealth Management’s investment advisors post articles or videos on their blog, Money Managers Live about investing, building wealth, wealth management, retirement planning, or other related topics. This week they debated active vs. passive investing.

“For the last year to year and a half passive strategies have done better,” said Young in the video. “It is interesting as you look over time, it switches back and forth and depends on the effectiveness of the active manager.”

Paragon Wealth Management’s advisors take an active approach to investing. Young said over the past 13 years, there have been times when passive investing has outperformed active.

“The disadvantages of the active strategies have been happening recently,” said Young. “When you have extreme back and forth movement in the market, that is going to hurt you when you are an active manager. That action doesn’t usually occur on an extended basis. We’ve had eight of those moves in the past two months.”

White said in general most people go to the strategy that is working the best in the most recent time period. Investors switch back and forth between strategies depending on what is happening in the market.

Young and White also discussed the differences between the two strategies, which strategy has done better over the long-term, which strategy performs better in volatile market and the disadvantages and advantages to each strategy.

Visit http://www.moneymanagerslive.com to watch the full debate of active vs. passive money management.

About Paragon Wealth Management
Paragon Wealth Management is a registered investment advisor(RIA) in Utah that actively manages all types of traditional and retirement accounts such as IRA and 401(K) rollovers, and pensions and trusts. Paragon has received numerous awards such as the Best of State award in Investment Advisory Services in 2011, and the NABCAP Premier Advisor award in 2010. Paragon has also been recognized on several lists such as WealthManagerWeb's Top Wealth Manager's list in the U.S. in 2010 and others. Call 800-748-4451 or visit http://www.paragonwealth.com for more information.

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