{"id":187,"date":"2015-09-23T13:36:05","date_gmt":"2015-09-23T18:36:05","guid":{"rendered":"http:\/\/rixtrema.com\/blog\/?p=187"},"modified":"2018-01-10T12:23:01","modified_gmt":"2018-01-10T17:23:01","slug":"the-problem-with-robo-advisors-use-of-mean-variance-optimization","status":"publish","type":"post","link":"https:\/\/rixtrema.com\/blog\/the-problem-with-robo-advisors-use-of-mean-variance-optimization\/","title":{"rendered":"The Problem With Robo-Advisors\u2019 Use of Mean Variance Optimization"},"content":{"rendered":"<p>Letting machines that are essentially error maximizers automatically build investment portfolios is not a great idea. In fact, it\u2019s a terrible idea for your clients. However, the first generation of robo-advisors does precisely that! In our review of the shortcomings of robo-advisors, published by ThinkAdvisor magaine, we explain the key problem of the first generation of robo-advisors and its origin. Read the full article here:\u00a0http:\/\/www.thinkadvisor.com\/2015\/09\/22\/the-problem-with-robo-advisors-use-of-mean-varianc#.VgHG0u3Te6E.twitter<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Letting machines that are essentially error maximizers automatically build investment portfolios is not a great idea. In fact, it\u2019s a terrible idea for your clients. However, the first generation of robo-advisors does precisely that! In our review of the shortcomings of robo-advisors, published by ThinkAdvisor magaine, we explain the key problem of the first generation&#8230; <\/p>\n<div class=\"clear\"><\/div>\n<p><a href=\"https:\/\/rixtrema.com\/blog\/the-problem-with-robo-advisors-use-of-mean-variance-optimization\/\" class=\"excerpt-read-more newsstand-button\">Read More<\/a><\/p>\n","protected":false},"author":3,"featured_media":178,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[12,95,154,153,131,93,132,126,32],"class_list":["post-187","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-financial-advisors","tag-investing","tag-machine-learning","tag-market-trends","tag-portfolio-construction","tag-risk","tag-risk-management","tag-robo-advisors","tag-wealth-management"],"jetpack_featured_media_url":"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2015\/07\/ThinkAdv-Capture.png","yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v15.9.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Problem With Robo-Advisors\u2019 Use of Mean Variance Optimization<\/title>\n<link rel=\"canonical\" href=\"https:\/\/rixtrema.com\/blog\/the-problem-with-robo-advisors-use-of-mean-variance-optimization\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Problem With Robo-Advisors\u2019 Use of Mean Variance Optimization\" \/>\n<meta property=\"og:description\" content=\"Letting machines that are essentially error maximizers automatically build investment portfolios is not a great idea. In fact, it\u2019s a terrible idea for your clients. However, the first generation of robo-advisors does precisely that! In our review of the shortcomings of robo-advisors, published by ThinkAdvisor magaine, we explain the key problem of the first generation... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/rixtrema.com\/blog\/the-problem-with-robo-advisors-use-of-mean-variance-optimization\/\" \/>\n<meta property=\"og:site_name\" content=\"RiXtrema.com\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LarkspurRiXtrema\/\" \/>\n<meta property=\"article:published_time\" content=\"2015-09-23T18:36:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-01-10T17:23:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2015\/07\/ThinkAdv-Capture.png\" \/>\n\t<meta property=\"og:image:width\" content=\"232\" \/>\n\t<meta property=\"og:image:height\" content=\"53\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@RiXtrema\" \/>\n<meta name=\"twitter:site\" content=\"@RiXtrema\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/posts\/187","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/comments?post=187"}],"version-history":[{"count":1,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/posts\/187\/revisions"}],"predecessor-version":[{"id":188,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/posts\/187\/revisions\/188"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/media\/178"}],"wp:attachment":[{"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/media?parent=187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/categories?post=187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/tags?post=187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}