It seems almost customary for bloggers to do a blog post every time the market is in distress. The “flash dip” over the past two days spooked some investors.
The grapevine was that some folks initiated withdrawals from robo-advisors, which caused them enough concern to make Facebook posts and videos. I don’t know how true that is. To me, it is a sad reflection of their thought process, or lack of it, when they decided to invest.
Crash Strategy For Robos : Less Than 25% Drop
I think it is the first time I’ve written on this. Hypothetically, if the market crashes tomorrow, and STI or S&P 500 experienced a 25% or more drop, what would I do?
Within the first few days of initial impact (assuming a sustained 5% drop for entire week of five days) robo-advisors equities and bonds rebalancing thresholds would most likely be breached.
The first …