Technology Enabled Investing

“It is the disruptor’s role to meet the needs of those who have been ignored and steal market share from the incumbent.”

The world isn't going to move backwards. We now live in a world dominated by data, so learning to live with it and maximize its usage is essential for success. Regardless of the industry you're in, you're undoubtedly facing an onslaught of new technology.

Technology will continue to both disrupt industries and create new opportunities. You either reap the benefits or become a casualty, it's your choice.

The current battle over the mass use of this technology innovations that we have today is about control – A fight to control a centralized or decentralized social construct.

All new technology will come with trade-offs. The Internet brought us a lot of ways to waste time but it also increased productivity. The first palm-pocket-computer was clunky and expensive and very few seemed to want it until we got to the point that smartphones became wildly accepted.

The new sharing economy is going to eliminate some jobs. But it's also going to create new, with flexible forms of employment. Chatbots and Artificial Intelligent systems will eventually be the norm.

I believe that we are entering an era where the first automobile was introduced. With new innovations in digital and crypto, things are going to unfold in ways that we can’t even predict.

“In the twenty first century, the robot will take the place which slave labor occupied in ancient civilization.” – Nikola Tesla

I have always been a fan of sci-fi movies showcasing the advancement in technology in terms of AI and Robotic applications. Nikola Tesla was/is right, automated machines have started to take over.

It began with the manufacturing sector, and now moving into various industries and that includes the financial sector as well. All the more today that we have started to move into the Internet of Things.

Without the computer and internet, online investing will not be possible and the world of stock market or equities trading would still be something out of reach from the masses.

The issue for many individuals is that they aren’t simply cut out to learn or go it alone in the world of finance and investments. Worst yet, many have poor investing behavioral psychology and jump out of the market at the absolute worst times (buy high and sell low without even knowing it).

This is where A.I. powered Robo-Investing or Robo-Financial-Advising was created. To put it simply, a robo-advisor is a method to automate via a computer algorithm the following: asset allocation, re-balancing, diversification in accordance to your financial goals.

You can even set it up to follow the lazy portfolio method and purchase passive index mutual or exchange traded funds. This is simply designed to take over the hassle of active management for you.

While this investment strategy isn’t perfect, it is better than over-priced actively managed funds with high annual fees and highly speculated peer recommended investment picks.

The current limits are customization and one’s behavior or habits.  There are also hybrid offerings with human assistance (for tax, financial planning) too that are easy to set-up and manage then link your bank account, and you’re ready to go.

But as with almost everything, one size does not fit all when it comes to financial advice. This space will still need to develop further for this will benefit the young, most beginner investors and/or investors with preference toward uncomplicated financial portfolios.

Technology Enabled Investing Technology Enabled Investing Reviewed by Vernon Joseph Go on Wednesday, May 02, 2018 Rating: 5

No comments