Betterment, Wealthfront, and other robo advisors acknowledge that client accounts were negatively impacted by the recent market dip, but they did not see a huge spike in client logins or capital withdraws, which would indicate client concern. Instead the robos argue that “...clients are predisposed to the fact that markets go up and markets go down and the best way to invest is to not panic during times of market volatility.”
Some advisors still see automated investment advisors as a passing fad and greet articles about the growing assets of "robo advisors" with canned skeptical remarks. “They have never been through a downturn,” the skeptics say, pointing to the historic bull market run as being the reason for the algorithms’ success. But on Friday the S&P 500 suffered its biggest daily percentage drop in nearly four years and the Dow confirmed it was experiencing a correction. And the robo advisors? “I’m really sorry to disappoint, but if I wasn’t listening to this sort of financial media, I wouldn’t have noticed a change at all,” said Daniel Egan, the director of behavioral finance and investing at Betterment.