INVESTMENT MINIMALISM: THE LAZY PORTFOLIO STRATEGY VS. ACTIVE TRADING IN HIGH-VOLATILITY CONDITIONS

Abstract

This article provides a comprehensive comparative analysis of the effectiveness of two polar approaches to private capital management within the framework of Personal Finance Management: passive index investing (investment minimalism/"lazy portfolio" concept) and active medium-term trading. In the context of permanent turbulence and increased volatility in global financial markets, the explicit and latent costs of both strategies are examined. The authors provide a detailed analysis of transaction costs, tax burdens, and psychological triggers affecting retail investor returns. Drawing on modern portfolio theory, the efficient market hypothesis, and principles of behavioral economics, the paper mathematically and logically substantiates the benefits of minimizing investment actions.