The 2nd selling point is its able to "rebalance" your portfolio based on your risk profile or investment goals AUTOMATICALLY. (Great for those who hate to think and can't squeeze the trigger!)
Quick poke: In a traditional 60% equities and 40% bond portfolio, how the machine rebalance when BOTH equities and bonds are in a bull market? Ding!
What's its biggest drawback?
Its the "investor".
When you delegate independent thinking to a machine, after 30 years, do you think you'll improve and grow as an "investor"?
Isn't that first year investing experience times 30?
No, I prefer the craftsman route - active investing.
Passive and robo are for those who just want the sex, but have no desire to invest the time and effort in flirting, seduction, and foreplay...
There might be time where there is no theory and a theory is made :) Long time no see.
ReplyDeleteWelcome back sleepydevil!
DeleteIts good to have youths at this watering hole!
The first one who did it had no theory. Blur, blur crash got sound do.
Then others came along to "explain" how the first one did it.
The theory is born!
Although no one ever asked the first one "how" he did it...
Wait!
LOL!
Now we can buy into Robo advisors to invest! Programming works!
ReplyDeleteCW,
DeleteYou know how I feel about passive...
Don't get me started with "robo"...
I'll take the craftsman route, thank you very much!
Hi SMOL,
DeleteIt will be interesting to hear your opinions on Robo. Hehe...
Rainbow girl,
DeleteRobo is just an extension of passive investing.
Its main selling point is "low cost".
The 2nd selling point is its able to "rebalance" your portfolio based on your risk profile or investment goals AUTOMATICALLY. (Great for those who hate to think and can't squeeze the trigger!)
Quick poke: In a traditional 60% equities and 40% bond portfolio, how the machine rebalance when BOTH equities and bonds are in a bull market? Ding!
What's its biggest drawback?
Its the "investor".
When you delegate independent thinking to a machine, after 30 years, do you think you'll improve and grow as an "investor"?
Isn't that first year investing experience times 30?
No, I prefer the craftsman route - active investing.
Passive and robo are for those who just want the sex, but have no desire to invest the time and effort in flirting, seduction, and foreplay...
That's why programming is a series of trial-and-error.
ReplyDeleteDo until something works!
"The theory is not wrong but we applied the wrong theory."
Delete:P
Rainbow girl,
DeleteWait. You know programming?
Or maybe you've heard the excuses from IT once too many!
LOL!
Not really... My programming skills are limited to some html, javascript and SQL.
DeleteCopy and paste? No problem.
The problem lies with customization. Sure will see errors popping up now and then.
Sorry, lemme rephrase to make it clearer - "The theory is not wrong but we applied the theory wrongly."
Rainbow,
DeleteWell, at least you know html, javascript, and SQL!
When I saw the lines of html codes in my Blogger blog, I'm glad I don't have to deal with them!!!
Blogger is quite IT idiot proof :)
P.S. Your original sentence sounds more personal to me ;)
That's how we speak in Singapore. And my writing style!
:)
Delete