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According to the recent 2014 Scottrade Advisor Survey, financial advisors are well aware of the robo-threat to their business. However, when asked about the potential problems with online portfolio management platforms, virtually all RIAs focus on the lack of human interaction as the main weakness: 80% of advisors say robos’ biggest weakness is “Lack of Human Interaction” and 46% say that “Lack of Service” which can be considered the same human interaction element. However, there is one major robo’s weakness that is not revealed in that study. Robo-advisors were all founded in 2009 or later and they have never seen a meaningful downturn in the financial markets. Yet, their algorithms...

Daniel Satchkov

29 Jul 2015

How to Explain China’s Stock Market Crash to Your Clients

The latest article by Daniel Satchkov, president of RiXtrema, published in ThinkAdvisor magazine raises important questions about the recent crash in the China Stock Market: 1) What is driving these extreme losses? 2) Is the worst over for China? 3) What could be the impact in the U.S.? While most financial advisors are getting these questions from their clients nowadays, the answers in the article go deeper than the standard story suggested by pundits on CNN that a drop of 0.3% in China corporate profits is responsible for this bloodbath. This crash is not a Black Swan that no one could predict but is driven by the leverage build-up that...

Daniel Satchkov

03 Jul 2015

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Sed posuere consectetur est at lobortis. Sed posuere consectetur est at lobortis. Cras justo odio, dapibus ac facilisis in, egestas eget quam. Aenean eu leo quam. Pellentesque ornare sem lacinia quam venenatis vestibulum. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis mollis, est non commodo luctus, nisi erat porttitor ligula, eget lacinia odio sem nec elit. Duis mollis, est non commodo luctus, nisi erat porttitor ligula, eget lacinia odio sem nec elit. Cras justo odio, dapibus ac facilisis in, egestas eget quam. Praesent commodo cursus magna, vel scelerisque nisl consectetur et. Cras justo odio, dapibus ac facilisis in, egestas eget quam. Donec ullamcorper nulla non metus auctor fringilla. Maecenas...

Daniel Satchkov

02 Jul 2015

“Who’s Your Robo?”

Bob Clark tells a story about a fouled-up online customer experience, and says that when things go wrong, you need a human in the loop to fix them. So he’s not worried about online advice. From there, we get a profile of RiXtrema and its BioniX platform, which allows advisors to set up a branded client portal on their website, with an account opening form, a financial planning questionnaire, and a chance to plug in the advisor’s approved funds and model portfolios. The portfolios are rebalanced according to the advisor’s specifications. Clients can log on any time they want to see their balances, and explore how different asset mixes will raise or lower their investment risk. Advisors,...

Daniel Satchkov

03 Jun 2015

Important Note: Early Warning In Financial Markets

As you know, Portfolio Crash Testing is used by advisors to differentiate and to find threats to clients’ wealth. PCT also helps you create more suitable portfolios with the optimizer and to model the future cash flows with RetireRisk. We constantly remind our clients that risk management is not about knowing the future, but rather about creating the right risk/return tradeoff for the long run. However, today we do want to share some thoughts on the current environment, which appears quite risky. Read more HERE: http://rixtrema.com/advisor/financial_markets_risk_now/#