Hedge funds fail because structural constraints compress returns. Buy-and-hold fails during stress because it offers no exit. The active vs passive investing debate misses what matters: knowing when to participate and when to step aside. Cycle timing gained 94% in 2018, 228% in 2020, and 11.6% in 2022 by stepping aside during declines and re-engaging at resets. Not more activity. Not less activity. Timed activity.
