Emotomy’s Exposure Index is different—we’re looking at what investors actually do and tracking it over time. It may help you explain market movements to clients as well as what you’re doing to prepare for a stock-market correction, whether you’re actively rebalancing away from stocks or, instead, preparing to rebalance strategically into the market while it’s low. Because our users are primarily long-term investors, not traders, either strategy may be valid, depending on your clients’ temperament.
Over the long term, we expect the Exposure Index to crystallize into something interesting. We want to know more about how advisor and investor behavior works—and doesn’t work. Ideally, this will make us all better at what we do, even if that turns out to be cautioning our clients to do less, not more.
Patrick Beaudan is CEO of Emotomy, an investment platform and robo solution based in Tiburon, California, and CEO of Belvedere Advisors LLC.