David Jackson
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The Rise Of Robo Rebalancing [View article]
The Rise Of Robo Rebalancing [View article]
Rebalancing is based on the assumption that asset classes trend upwards at the same long term rate, and that deviations from their long term path and corrected at some point by mean reversion. If those assumptions don't hold, then rebalancing damages performance and may increase risk.
If you think an asset class may go to zero, then rebalancing would keep switching you into that asset class as a falls - suicidal. However, if you believe that the asset classes in your portfolio exhibit mean reversion, rebalancing = buy low, sell high.
This means that the key issue for investors is then: How can you pick asset classes that are broad enough to never go to zero, and will share similar long term uptrends?
The Rise Of Robo Rebalancing [View article]
Wall Street Breakfast: Must-Know News [View article]
Given the size of IBM, this probably indicates that the tech sector is less strong than the recent results from INTC and ORCL suggested. Given the weakness in the stocks of other tech leaders (eg. GOOG), it makes me more cautious about tech overall.
Note also that IBM will have a meaningful impact on the Dow today: seekingalpha.com/news/...
Covestor and VesTopia: Winners and Losers from Peer to Peer Investing [View article]
I mentioned in the article that most people's concerns focus on the security issues. Rikki addressed Covestor's approach to that in his comment above; can you talk about how VesTopia is approaching security?
David
TD Ameritrade/E*Trade Merger Rumors Should Give Shares a Boost - Barron's [View article]
But it's not clear that the management succession issues could be easily solved,. It would probably take a much sharper decline in trading volumes that we've seen so far to push AMTD and ETFC into serious talks. So the Barron's speculation is probably too early.
Full disclosure: Long ETFC in my kids' accounts (from when I bought it at about $3 in the last downturn).
INVESTools: Swim And Sink [View article]
<b>Joseph:</b...
I'm concerned at your statement that " If this isn't a scam, it's at best a massive ripoff." Can you provide more evidence of the promises made and how they aren't fulfilled?
You write that "the web is littered with disgruntled students who never made a dime and whose attempts at a refund prove futile". Can you provide links to back up that assertion?
<b>Dardesigns:&l...
You say that you had a great experience with the product. Did you make money trading as a result of that, and are you still trading now? Can you tell us how your performance changed after you took the course compared to beforehand?
Zecco To Offer Free Stock Trading - Threat to Online Brokers [View article]
It doesn't seem to have had much effect yet. Perhaps once trades get to a certain low price, other factors may become more important: website functionality, execution, spread, and integration with banking.