So Lu coded his own solution. In 2010 he co-founded FutureAdvisor, an online investment platform that uses algorithms to direct users’ savings to diversified exchange-traded funds. Depending on your risk appetite, the software automatically rebalances your account, navigating you through the world of equities. “This company was partially created to help people like my group of friends,” Lu says.
But industry leaders know that they can’t afford to shut doors on millennials. They’re already the most populous generation in the U.S., and their potential for wealth creation is huge as they approach their peak earning years; by 2020 millennials could have $7 trillion in liquid assets. “You’ve got this extra-ordinary demographic shift [away] from baby boomers,” says Fairbairn. “That’s going to lead to an aggressive market-share game.”
What im hearing is my generation is getting more involved in throwing their money at advisors with computer programs making decisions. Bad idea, it has never worked to use algorithms to make every decision. Usually they work well at the beginning but become random soon after. It could work as an extra tool if constantly tweaked by a trader who makes good decisions but that wont happen. This is new, exciting and will be streamlined with little management. It will create more opportunity for me. It is a new idea but the same concept used since computers got popular in the 90's....algorithms. the fallacy is simple. Computers are not smart, just fast at being stupid. I learned that about calculators when i was a kid.
I am not complaining, im just confirming the ignorance of average people for the upteenth time.
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