Pricing Power (pt. 2) – Intellectual Property

16+ ARTHUR: It is King Arthur, and these are my Knights of the Round Table. Who
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Michael
1 year ago

Market downturn?

“Run Away! Run Away… :)” {Apologies to Monty Python}

Perhaps a way for robo-advisors to stop knee jerk sell actions by clients is behavioural “nudges” like exit fees or phased withdrawals to keep the investor on track. The problem given past fee excesses by the industry this will look very self serving. Another approach are loyalty bonuses but this will eat margins. Nevertheless, you are right Ben given how much money has flown into passive at the market valuation tops, the next correction will test investor resolve and market liquidity. We might see an “Beast of Caerbannog” asset fire sale spiral in stocks widely held in indices.

Family owned stock with poor free float, not in indices as they do not aid index companies create ETF product or indices, may be better havens when market crunch hits.

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