Robos Performance Called Into Question Following Brexit

“According to an article published by the Wall Street Journal, automated investing service Betterment LLC halted platform trading on Friday to prevent clients from elevated market volatility due to Brexit.

Citi’s William R Katz said in a report that this action raised question about Robo’s ability to “navigate client communications/relations and volatility” amid tough market conditions.

Although Betterment highlighted that the suspension was in the clients’ best interests, and not an issue with the overall model, the event “heightened focus” on how Robos perform during periods of stress.”

Full Article at Benzinga