For instance, during the height of market volatility from August 21 through August 28, there was a 51% increase in the number of client calls, there was a 66% increase in the number of client online chats held and the most common client questions were about the markets in general and how the portfolios work during these periods of volatility, in particular regarding automatic rebalancing and tax loss harvesting.
While most robo-advisory business provide a clear cut-and-dried formula for people to ride the markets, there are times when talking through personal circumstances may benefit investment decisions.
While McDaniel admitted that there were a very few clients who did actually redeem or close their Schwab Intelligence Portfolios accounts, there were many more clients who added more money, and opened accounts were “many times more than that number.”
Robo advisor clients might find that just having the option of calling can serve to calm investors’ fears during those periods of market volatility.
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