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A comment on The Rich Are Already Using Robo-Advisers, and That Scares Banks. Parent comment

Re:The Rich Are Already Using Robo-Advisers, and That Scares... by guelo on Sunday February 07, 2016 @03:28PM (#11054649)
Taking advantage of big market crashes is difficult when your whole portfolio tanks. I've been wondering about keeping ~10% of my funds in reserver in safe cash-like assets in order to be able to move in when the whole market tanks.
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Re:The Rich Are Already Using Robo-Advisers, and That Scares... by vehementi on Sunday February 07, 2016 @06:50PM (#11055609)
That still counts as timing the market and is Known to be ineffective. What if the market doesn't tank and you sit in cash for a long time? If it does tank, how will you know when is the true bottom for you to invest your last 10% in? Etc.
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Re:The Rich Are Already Using Robo-Advisers, and That Scares... by jldugger on Monday February 08, 2016 @12:34AM (#11056507)
Generally speaking, when stocks fall bond prices rise. In this regime. So if you have a mixed portfolio of assets and bonds, in your scenario you can sell treasury bonds for a profit, and use the proceeds to buy up stocks. If you automate this transaction when your portfolio deviates from a target mix, you will automate a 'sell high, buy low' strategy.
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