Coronavirus Infects Stock Market: Part L
With casinos slowly reopening (sorry, most buffets are still closed), it looks like gamblers found a home with Nasdaq.
While the world, as we know, has basically come to an end, the tech-laden Nasdaq is up a couple percent year-to-date. Welcome to Planet Hollywood.
One is reminded of the dot.com bust especially when Shopify), a Canadian tech company, trades at a larger market cap than Royal Bank of Canada. Pop quiz: One was founded in 2004, the other in the 1800s.
Recently, I was asked about robo-advisors: You set-up an account with a low minimum, answer a questionnaire, and an algorithm invests you in a basket of mutual funds, ETFs, and/or stocks.
The robos save money on phone reps, have a big marketing spend, and a neat looking website.
But what if there’s a problem? A couple of years ago, when stocks were down 1,600 points, Bloomberg reported that the websites of robe-advisers Wealthfront Inc. and Betterment crashed. This is one the MANY reasons robo-advisors will NEVER work for investors–NEVER. What a SHAM.
Also, it’s been my experience that investors want regular conversations about their life savings, especially when they’ve made money over a lifetime and it would take another one to replace the losses.
Losing $500 on a company like Shopify might be a cheap education to help a young saver seek out a diversified portfolio with the help of a robot.
Investing your life savings for and during retirement might require a more personal touch, especially when you have a lot more to lose than money.
Read my entire series, Coronavirus Infects Stock Market here.
Originally posted on Your Survival Guy.