The following is a hypothetical and fictional account of how big tech can disrupt the wealth management industry. A back-to-client focus is discussed. reminiscent of how Apple’s Mac OS empowered users and supplanted predecessor operating systems.
Since market efficiency is the primary driver of the rise of passive investing and the demise of active management, the structure of wealth management investment offerings is at stake.
Black swans are rarely as surprising as the concept suggests.
As investors we have to forecast future cash-flows and discount them to come up with a fair price. We also know that forecasting is difficult. Or is it really?