There’s an old ‘Lion’s Parable’ about a family that took in an abandoned cub who, despite being loved and cared for by the family, once grown decided to eat them all. Ouch! And in a not-so-obscure way that parable, and recent events, remind me of what’s going on with oil in the minds of investors.
In terms of investing, our greatest endeavour is to find help in differentiating between the sounds of fear and any actual threat; what’s real vs what’s perceived.
There are over 200 such “robo-advisors” now in the market, most of which are under-financed and “manage” very small asset piles. The popular view is that a near-term market reckoning will play Terminator to the dross – as opposed to robo-advisers destroying real advice and real jobs.
In the Summer 2002 “Back to Basics” I reminded clients in an article I wrote in the Daily Telegraph on June 29th that a Stockmarket Index however is a barometer that’s wholly unreliable. It tells you it’s raining when it’s sunny. And vice versa.