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What Betterment Is Telling ETF Investors Shaken By Volatility
As in past history of investment products that can't go wrong, I have a feeling that the fool proof diversification models used by the Robo models will be surprised by the close correlation of the decline in world markets ( including the U.S. markets ) and the returns will suffer for it. For the premise was that emerging / international market performance was supposed to offset / be uncorrelated to a decline in U.S. market ( by emerg / int'l rising ala QE schemes and monetary stimulation or such that has happened in the past ) . Yet the world is mired in a deflation of commodity prices and persistent slow or negative growth. Many brilliant investors have built reasonably big positions in the international markets over the last 4 -5 years with little to show for it ( Ray Dalio being one ). A fair amount of fanfare and assets flowing into these Robo accounts over the last couple years ... Reminds me of the tech bubble funds ...
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A fair amount of fanfare and assets flowing into these Robo accounts over the last couple years ... Reminds me of the tech bubble funds ...