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The Truth About Automated Investing

Daniel Okafor

2026-05-14

5 min read

Automated investing went from fringe experiment to a trillion-dollar category in barely ten years. The pitch was simple: low fees, diversified portfolios, no minimum, no jargon. Most of that pitch came true. What the algorithms nailed Rebalancing, tax-loss harvesting, and removing emotion from the buy/sell decision are exactly the tasks software does better than people. It never panics in a downturn and never chases a hot stock at the top. Where it still falls short is the messy, human stuff — a job loss, a new house, a growing family. The best modern platforms blend both: algorithms for the discipline, a person for the decisions that don't fit a model.

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