Robo-Advisors Peddle Investment Mistakes As Strategies

Risk Assist automatically sells when your stocks drop, and then rebuys later after they recover, turning a classic investment mistake into a financial product

One of the most important things a financial advisor can do is help people resist the urge to sell when things get rough, only to reinvest at a higher price a few months or years down the road. But it’s still no surprise that robo-advisors are helping people automate their worst investing behaviors. The latest example is something called Risk Assist from TradeKing Advisors, a financial product that seems like it’s designed to underperform.

Buffett mocked a similar strategy way back in 1987

“Should the stock market take a turn for the worse, Risk Assist responds by shifting...