STREET DOGS: Why robo-advisers are a crazy idea
Michel Pireu: Tom Sosnoff says there’s too much money chasing opportunity to make something that’s basically robotic
Nothing "drives me more crazy than robo-advisory services", said Tom Sosnoff at the TradersExpo in New York, earlier in 2017. "Because nothing is crazier."When you think of where the edge is," he said, "where the opportunities are, if there was an opportunity to build something mechanical, with all the capital that’s out there, why wouldn’t everybody do it?"Think about robo-advisers, think about automated trading, with the hundreds of millions of dollars, we could argue into the trillions of dollars, that are out there seeking minimal returns — the global return for risk-free [investments] is virtually zero and risk returns after costs are minimal — how could something be programmed for anything other than a very short opportunity? Because as soon as an opportunity came along and as soon as that opportunity was contracted there’d be nothing left, and then what would we be fighting over?"So one of the most important things to understand is that everything you learn about content, abo...
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