The Problem With Robo-Advisors’ Use of Mean Variance Optimization
Letting machines that are essentially error maximizers automatically build investment portfolios is not a great idea. In fact, it’s a terrible idea for your clients. However, the first generation of...Read More
What To Focus On: First – Goals, And Only Then – Portfolio
When discussing investment plans with clients, it always makes perfect sense for an advisor to talk about ‘why’ before ‘how much’. The ‘why’ for the investor is always the goal....Read More
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...Read More
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...Read More
The Main Weakness of Robo-Advisors and How You Can Capitalize
Wealthfront brought the Markowitz optimization algorithm to the masses and in many ways the company is a symbol of the democratization of risk management that’s now going on… Let’s use...Read More
Why Risk Management Isn’t Like Silly Car Shopping
This article by RiXtrema President appeared on ThinkAdvisor.com I like to use car shopping as an analogy to the investing process. Let’s imagine what it would it be like to...Read More