I don't know.
Probably yes, the answer is yes.
That they are not subject to emotional behavior.
But last but not least, I think we should not forget that robot are perfectly
suited for I would say non-complex pretty standard situation.
And typically, that of devising a strategic asset allocation.
What are the cons?
Well, typically, if the situation is more complex if we have to is like the big
airplane going through a tempest may require here some fine tunings, maybe not.
But perfectly suited for a robot.
Talking about investments, we live now in a more complex world both because
interest rates are low, so there are no more risk free assets.
We have to work with this constraint and
hence its becoming a bit more complex in terms of diversification.
There's also increased regulations; differing from one country to another.
So, here too this makes the situation a bit more
complicated for robot to act perfectly.
Again, here emotions, integration of emotions maybe helpful for
you to better understand the markets.
And we've seen that when we talked about Euro finance this is also a lot
of the latest trends on which we are specializing here at
the University of Geneva.
And sometimes talking about this tax incidents of selling losers,
so as to off set the gains you have made on
your winning stocks may not be optimal.
Why should you sell a stock just for tax purposes?
The robot might not know that, in fact, you are sticking to that position
because you think it's going to bottom out, and out perform soon.
So in conclusion, I would say Robo-advisors are certainly useful
for helping you shape your strategic asset allocation.
This is the sort of highway of your investments but when you have
to deal with tactical asset allocation possibly here big data will help but
it's more complex situation and more difficult.
I would say, robots are different animals, but
no perfect substitutes to perfectly efficient human financial advisers.
[SOUND] Talking about animals, you know I'm quite fond of animals and
the so for this last video, for this concluding video.
I'd like to take you back to where we were during the winter and
this time here it's summer, at last.
And I want to take you back to the same place and
talk about some animals in the world of finance.
So, come with me.
[MUSIC]