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

Question

Kenneth Lou · Accepted Answer

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

Yong Kah Hwee · Answer

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

Hariz Arthur Maloy · Answer

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.

Elsa Goh · Answer

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

Christopher How · Answer

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.

Gabriel Lee · Answer

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

Amanda Ong · Answer

Hi!

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

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Jason Sin · Answer

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.

Nicholes Wong · Answer

Remember to compare stashaway and autowealth fees.

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

Answers (9)

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