Stableford Capital Insights

Volatility and Robo Advisor Web Issues Will Likely Usher in Active Asset Management

Robo-advisory, along with artificial intelligence and big data, were  top trending buzz-words this past year. Yet as the S&P 500 Index plunged on February 5th, complaints regarding robo-advisor sites crashing were cause for concern. Even with all the talk, clearly not all investors knew what they were getting (or not getting). When the websites of the country's two biggest robo-advisors in the country crashed on Monday, complaints quickly began to spread across Reddit and other internet sites.

Robo-advisors (robo-advisers) are digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision. A typical robo-advisor collects information from clients about their financial situation and future goals through an online survey, and then uses the data to offer advice and/or automatically invest client assets. - Investopedia

For those who thought they were comfortable making investment decisions without speaking to a human advisor, "the glitches at the robo-advisors represent a setback," according to a Bloomberg article reporting on the crash.

It's About You, Not 'The Market'

Investors have been excited by the new trend, and while it certainly may be right for some, those with higher net worth, more complex investment portfolios, or those who don't feel comfortable with a do-it-yourself option, should consider an investment firm that will partner with you to help you achieve your financial goals.We've long discussed risk-adjusted returns, and with the recent volatility in the market, we feel stronger than ever that the key to our client's peace of mind is the fact that they know we are managing their assets.

5 Key Questions to Ask About Asset Management

Unique, ever-changing wealth considerations require dynamic asset management from a firm that is flexible and keeps you informed. Find out more by downloading the Stableford Asset Management Fact Sheet.

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July 8, 2024
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by Stableford Capital
Andrew Brinkman
Andrew J. Brinkman is the Founder of Stableford Capital. Over the course of his 45+ year career, he built A.J. Brinkman & Co., a leading foreign exchange arbitrageur and institutional floor broker, was a managing partner of Petros Capital, a long/ short institutional hedge fund and, for the past ten years, he has been a discretionary asset manager for high net-worth families. Andrew Brinkman has been a member of the Chicago Mercantile Exchange, the New York Futures Exchange, and the Chicago Board of Trade. A 1978 graduate of Cornell College with degrees in Economics and Political Science, he was a board member for ChildHelp USA, a board member of the Berry Center for Economics, and former trustee of Cornell College.