A fascinating read – For Robo-Advisers, the Next Bear Market Is
Make or Break
“Low fees and an
investing-on-autopilot approach have attracted about $50 billion in assets to
the broad universe of robo-advisers, according to researcher Aite Group LLC.
The rise of these robots and their automated investment strategies has largely
coincided with a multi-year bull run in stocks, which means the nascent
industry could face a big test if markets were to turn.
A bear market would
represent a challenge that the ranks of robo-advisers haven't encountered yet,
and it would be the ultimate test of just how crucial, or irrelevant, working
with actual humans is to good, long-term investing.”