maybe he turned into a drug dealer?
bte we been in a sideways market since 2000…
contrarianedge.com/2013/01/04/sideways-markets-presentation/
Done…
sell sell sell
why the selloff?
https://dl.dropboxusercontent.com/u/6010227/Webshare/AVI%20Presentation%20v19%20-%20Atlanta.pdf
I like how they lumped years 2007 and 2008 and dot com bust as “sideways.” Sideways - as if everything was neither growing nor shrinking. Just stale…business as ususal when in reality it was a sh&t show at times and glory days at times.
No it doesn’t. And that’s a good point that I mentioned earlier too. Rising tide has an important effect.
There are dirtbags in every industry. The company you chose makes all the difference.
Goodluck.
Well said.
True, but it’s also true that some industries attract more dirtbags than others. Finance being one of them.
The dirtbags I can handle, they are very much present in my current job as well. It is the outdated mentality I grew to hate. Someone posted here that you cant algo a custom IPS for 50 year old so and so. Well, it can be done, because it is already being done. Extracting meaning from texts (such as self-written investor life stories) is a blooming field of ML and if you’ve ever read a bot-written TLDR you know that the sky is the limit. Maybe my resentment stems from the fact that I live in very artsy/entrepreneurial area where I am confronted with the up-and-coming stuff every day and established world views are broken down with every new quant shop opening up.
^Hm sounds interesting, haven’t seen anything like this yet. But I would say there have been many surveys done that show retail clients (particularly HNW ones) still want human involvement or some kind of hybrid algo/human combo. I think this makes sense given communication is a huge factor when dealing with someones majority, if not all, of their financial wealth. Think of algo custom workouts that are much lower cost than getting a personal trainer. The former has been around for maybe a decade, yet personal trainers can still be found in almost every gym.
Yeah, because neither of those help you lose weight… I always hear the human interaction argument, but I think it really only applies to high-maintenance customers who waste your time on stories about their problem-grandchild. I think data privacy is still the biggest concern.
The biggest challenge robo-advisors will face is how their clientele will react as they go through a market cycle or the next crisis comes along and then they have no idea what to do next. An “Advisor” will be available to speak to the investor, who will likely be a PM. But guess what, the this advsior has never talked to this client before. He doesn’t know them at all or have any relationship with them. Robo-advisors will have a place in the financial services industry and will likely act as pipeline as investors continue to build up assets then transition them into the traditional advisory model.
For the DIY investors, it will offer them more choice and flexibility. Which is good. Advisors don’t want those clients anyway.
Yeah, I think people still want some sort of “expert” to hold their hand in investments. With a “robo advisor”, the investment decision is still in your own hands, and that is quite a scary thing. The 1% or whatever management fee charged by humans is cheap in most peoples’ view.
Are services industries not “real”? I’m not bebating the quality of investment at advice versus an ETF, but the business is real…
Industries that are not real generate no revenue. Therefore service industries are real. They are billion dollar industries.
Not super great sample size, but relevant to our discussion. HNW still want human touch.
http://www.forbes.com/sites/forbesinsights/2016/06/02/the-future-of-wealth-management/#1b30793342a3
It is a very interesting post indeed. I used to be a sell-side oriented person in my career aspirations but fate led me into the industry. Industry is not equal to industry through. Financial services is not much different in terms of mental attitude no matter which function you are performing, it shapes people. But funnily, the last few years in the real industry, with down-to-Earth people made me flee back to services. It is a very subjective issue. I personally like the industry better than services for the work-life balance and sort of independence but it comes at a cost of a very short-term functional career. So I am simply sick and tired of the fact that my line of work in the industry is so black-box and subject to corporate strategy changes and all the really worthy roles in major structured companies (the way I like it!) are taken by ex-BB bankers, that I would rather be at the source that at some corporate not knowing where it is steering… I strongly dislike the idea of my career being a ping pong ball in hands of minor players. So it all depends on your experience.
Very interesting post. I recently made a thread asking advice on finding a low cost advisor. Throughout my research to find a viable financial advisor over the past several months, I figured out that for my family, we’d probably be better off with low-cost index funds and find someone to utilize their software to rebalance accordingly on a retainer fee basis. Fees based on a % of AUM as your wealth gets larger is not good for the client IMO unless you are getting very good advice and beating the benchmark consistently. Say you have $20M and you pay an advisor 50-100bps (it’s a sliding scale downward the bigger you get). Even at the low-end of 50bps, you’re doling out $100K per year which is outrageous if we look at it on a per hour of work basis.
I don’t mean this is a full knock on financial advisors. They certainly have a place for HNW individuals who aren’t as sophisticated and frankly have no business in financial markets. The hand-holding can be value-add. That said, the high fees for the advisor (we haven’t even factored in fund expense ratios and other fees) make this industry particularly ripe for change especially since on average active management hasn’t demonstrated strong results.