Is it a good time to invest in Robo-Advisors now because the US markets are now tanking and we should buy low? - Seedly

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Asked by Anonymous

Updated 3w ago

Is it a good time to invest in Robo-Advisors now because the US markets are now tanking and we should buy low?

I read from the community that many people are seizing this opportunity to invest in the US market. And thinking whether the obvious way would be to do this via the Robo-Advisors? I'm choosing between Stashaway and Autowealth now.

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Only invest if you're investing for the long run. At least 5 years. Remember that time in the market is better than timing the market.

If you're investing for the long term, anytime is a good time to invest. Start with DCA-ing.

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Kenneth Lou
Kenneth Lou, Co-founder at Seedly
Level 8. Wizard
Answered on 24 Oct 2018

I think there is an important factor which you may be missing out on. How much do you plan to invest? If it's a few hundred dollars, then the robo advisors would make sense as you would be buying fractional shares in ETFs.

However, if you plan to invest $10k or more, then I would actually recommend you to consider doing it via a brokerage instead!

You can read more about my explanation on this here: https://seedly.sg/questions/what-is-the-best-way-to-buy-us-stocks-eg-facebook-amazon-netflix-and-google

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Elsa Goh
Elsa Goh,
Level 5. Genius
Answered on 24 Oct 2018

Is it really that low? Pls compare with historical data for the past 5 yrs first.

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Yong Kah Hwee
Yong Kah Hwee,
Level 6. Master
Answered on 24 Oct 2018

If you do DCA, then it doesn't matter when you start investing. Any time is as good as any other time.

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Christopher How
Christopher How,
Level 4. Prodigy
Updated 3w ago

If you wish to invest in US market, just buy US index ETF. That's the easiest way.

If you were to invest via a robo advisor, you are accepting the portfolio recommended by the robo advisor based on your risk profile and the recommended portfolio is usually a globally diversified portfolio and not solely US-centric. Therefore you are only partially investing in US when you invest through a robo advisor.

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Kenneth Lou
Question Poster

24 Oct 2018

thx for sharing your thoughts. yeah will go deeper into their portfolio allocation. have you used stashaway?
Christopher How
Christopher How

26 Oct 2018

No I have not used stashaway before. :)
Gabriel Lee
Gabriel Lee,
Level 6. Master
Updated on 24 Oct 2018

As per what others have shared, if you're looking to invest in US ETFs via Robo-advisors, it is for long term as only then, you'll be able to see the returns. And in this case, you should be Dollar Cost Averaging every month so when you enter the market doesn't matter since time in the market is better than timing the market When you sign up, get a referral link from others and you can get a few months of free management fees

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Amanda Ong
Amanda Ong,
Level 3. Wonderkid
Updated 3w ago

Hi!

Thank you for your interest in StashAway! My name is Amanda and I am the Head of Client Engagement here at StashAway.

Just to share, when you create an account with us, we will build for you a customized portfolio of USD-denominated ETFs, based on your goals, risk level and financial information. By investing in ETFs from different asset classes, our portfolios provide diversification. Metaphorically, as you do not "put all your eggs in the same basket", investing in diversified ETFs helps you to manage risks in the face of uncertainty. As we use fractional shares (https://www.stashaway.sg/r/fractional-shares-at-stashaway), you are able to achieve this diversified portfolio even with a relatively low capital outlay.

Our portfolios are designed for medium to long term investment, managing risks and enhancing returns with our in-house investment framework. Our algorithms monitor your portfolios daily, and rebalance them regularly to precisely manage your portfolio's risk level. Our investment framework constantly monitors prices and economic indicators, and updates your portfolio allocation, helping you to navigate through changing economic cycles. You can read more about our investment strategy here: https://www.stashaway.sg/r/stashaways-asset-allocation-framework.

By leveraging technology, we can be both time and cost efficient. We pass these cost savings on to you in the form of lower fees.

If you would like to learn more about us, you can contact us at [email protected] or +65 6248 0889 (9am - 6pm, Monday - Friday, excluding public holidays). We will be happy to help! :)

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Kenneth Lou
Question Poster

25 Oct 2018

Hi there, thank you, I will consider this and read up more. So would now be a good time to invest in Stashaway and will you recommend to put a dollar cost average or lump sum? I have around $10k which i would want to invest.
Good Day Every Day
Good Day Every Day,
Level 6. Master
Answered on 24 Oct 2018

It is better to buy US etf instead of using Robo Advisors. Even though US markets are tanking, the US markets are actually not cheap. Thus, if you were to buy, it is better to diversify into different markets and different assets. Don't put all your eggs in one basket.

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Remember to compare stashaway and autowealth fees.

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