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Published: Jan 29, 2024 8 min read

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There are, ultimately, two ways to invest. Most individuals are passive investors who, for good reason, shy away from risk and stick to their long-term plans regardless of what's happening in the stock market or the greater economy. Then there are others who choose to be active investors, taking on a lot more risk for the chance at beating the market.

Active styles of investing are not typically recommended for the average person. But in recent weeks, finance behemoths like UBS Wealth Management and BlackRock have said that the coming year and beyond will be better suited for active investors than passive ones.

"When I think about the opportunity for alpha [beating index funds], that’s where I get really excited — the most excited I’ve been in 20 years actually," Tony DeSpirito, BlackRock's chief investment officer of fundamental equities, said in a December meeting.

Institutions are excited by the prospect of beating the market, and they're confident enough to take on the risks of active investing to do it. But is this a feasible strategy for retail investors, and should you consider becoming more active with your investment portfolio in 2024?

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