Latest / Financial Survival Network / Introduction of Allio Finance, and It's Advantages Over Other Investment Engines - Joseph Gradante #5834

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Introduction of Allio Finance, and It's Advantages Over Other Investment Engines - Joseph Gradante #5834 · Financial Survival Network

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  You know, I think financial literacy is something that you know, we don't
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  have in this country. And if there was a higher financial literacy rate,
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  I think, you know, people would vote wiser, people would look at
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  policy closer. People need to take ownership over their lives in their future and
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  stop believing that the government is going to be this panacea for the future.
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  You're listening to Carrie Letts's Financial Survival Network, where you get valuable information you
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  just can't find anywhere else to thrive in today's trying times. You need the
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  Financial Survival Network now more than ever. Go to Financial Survival Network dot com
• 0:36
  and get your free newsletter and gift. Financial Survival Network now more than ever.
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  Welcome. You are listening to watching the Financial Survival Network of your host
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  Carrie Let's. Well AI is invading everything machine learning everywhere you look, whether
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  it's driving, whether it's writing text copy, or wherever it seems to be
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  the latest rage. Well, how about one here that will replace so called
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  a modern portfolio theory with a more updated and more flexible means of assuring your
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  investment diversification of Joseph Rdante is with us Now. You are a financial expert,
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  founder of alio Finance. It's great to have you on the show,
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  Joseph, So tell us how big a deal is alio Finance and what you're
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  trying to do here. Well, we obviously think it's a really big deal
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  and we hope to be the future of finance. We hope to lead the
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  way for retail investors into sophisticated investing because even though there's been great technologies from
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  a ux perspective that will come out in fintech, really there's nothing behind the
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  hood when it comes to the technology. I mean, you look at well
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  Front and Betterment, right, they're considered the best names in robo advisory.
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  Even you know, their riskiest portfolios have only gone a little over six percent
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  and that's sector or bowl market. So the technology is antiquated, and we
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  hope to lead the way into a new digital banking and wealth management experience.
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  All right, So how many people are using this right now? So right
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  now we're in beta and we've already accumulated three thousand users in beta, but
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  we have thirty thousand people on our weight list. So it's you know,
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  the biggest weight lists for a consumer fintech gap in the past four years.
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  Really, So what's this going to cost? It's just a dollar month and
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  you get of you know, basically, you don't have to know where to
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  start investing. You can start with change. You can use roundups and what
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  it does. So for example, with machine learning and an investment engine and
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  differences. You know, with other investment engines they only use historical performance.
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  So with machine learning, we're able to apply future forecasting models as well as
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  probability correlations between asset classes. What I was talking about before representing how you
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  can get alternative asset class exposure into the portfolio without the risk of fat tails.
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  See what mean variants outization? It assumes normal distributions, but the climate
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  that we're in right now has a lot of disequilibrium in it, and so
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  there's anything normal distributions. And that's why full scale optanization is the right technology
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  for this macro climate to get the exposure that you need to get the yield
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  that you could get you know, in some of those spaces. Okay,
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  so have you back tested it and see how this thing has worked over the
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  years. Yes. Raymond mcletio or chief investment officer, he ran a few
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  edge ones, so his models, he has models for the past twenty years,
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  and they've been astonishingly accurate, which is why I made my chief investment
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  officer. Okay, and so what kind of returns have you gotten? Well,
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  we've just we've only had a quarter in the market. But let me
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  give you an example. We did a tactical trade last month on QQQ and
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  we caught it right as tech we're starting to boom, and so we were
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  able to pick up in additional you know, eight percentage points just on that
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  trade alone. So other roboadvisors aren't doing things like that, you know,
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  tactical play swing trades on portfolios. So you're getting this you know, investment
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  engine, like I said, the has machine learning. Like for example,
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  when we met as an investment team, there was a time where we wanted
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  to cut exposure to a certain sector. This was a Friday meeting, in
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  the finance meeting. When we came back in on Monday, the investment engine
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  had already eliminated exposure to that sector. But to add an extra layer of
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  filtration. After the investment engine gives us its outputs, well, then the
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  investment team looks at that and then looks at you know, historical circumstances.
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  Times that were analogous, and then we decide if we want to listen to
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  the engine or not. Okay, so that makes sense, and has this
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  thing been wrong? And then how wrong has it been? Hasn't been wrong
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  yet? So we've only been in the market, you know, for a
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  quarter, So um, yeah, I mean, but if everybody gets this
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  bot, basically everybody's either going to win or lose, right, and everybody's
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  going to win or lose. I mean, other people can win with different
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  strategies. I mean, Warren Buffett and George Sharrows are both successful investors with
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  different strategies. So we're not the only people that could navigate these markets.
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  But obviously we believe in our strategy the best of course. But let's say
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  we get ten million people using your strategy, all right, the majority of
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  the players are even a substantial minority the players. Well, that in itself
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  affect the market. I guess if there's enough capital behind those trades, it
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  could affect the market. I mean, Zie Flayers affect the markets Black Rock
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  and other players. So yeah, if you have enough assets behind you,
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  you could affect the market. And so that does that mean that everybody using
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  it is a winner or I mean or it's a totally It's kind of like
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  the lawyer goes to the judge and says, your honor, you took a
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  bribe from my adversary. How could you do this? This is terrible?
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  And the judge responds back, Hey, well, why don't you just have
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  your client give me a bribe and then we can have a fair trial.
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  If everybody's using it or something similar, let's say there's going to be ten
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  thousand iterations of this, where does that leave the market It's just a bunch
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  of bots in each other around. Well not really. Well, if we're
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  the only ones doing full scale optimization right and we are right now, but
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  you have different robo advisors using mean variance optimization getting different returns. So you
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  can even use the same technology and have different people, you know, with
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  different inputs and different outputs. So right now we have a pattern on full
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  scale optimization, but it's certainly possible that other people could come up with other
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  technologies that would rival R. So I wouldn't say that, you know,
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  we're gonna be the only winners in the market. I wouldn't box myself into
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  that corner. Right. Well, it's a fascinating concept here, and it's
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  so inexpensive. It really sounds like it puts the individual investor and the same
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  footing as these big hedge funds. Is there a minimum that you need to
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  invest to really make this make the most of it? Well, that's the
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  idea, Kerry Alio stands for all inputs and outputs all in one. The
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  idea. You know, I haven't been a global macro strategist myself on the
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  buy side. The idea is that there's no reason why the retail investor can't
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  get access to these investment strategies or where technology is at. You know,
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  I think financial literacy is something that you know, we don't have in this
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  country. And if there was a higher financial literacy rate, I think,
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  you know, people would vote wiser, people would look at policy closer.
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  People need to take ownership over their lives in their future and stop believing that
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  the government is going to be this panacea for the future. And so that's
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  what we hope is going to be the externality of our mission. All right,
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  Well, I think it's nobel I guess it's the kind of thing that
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  we're really only going to know with the passage of time. Right, how
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  this wellness works for just six pack. You know a guy who's active in
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  the market, but not a professional trader, how should he use this?
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  How should he use Alio passively? Right? I think you should let the
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  professionals do what they do and learn the difference between Allie and other platform From
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  that, you can learn while you do it. For example, we offer
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  a flexible portfolio feature and what that allows people to do. After you see
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  your Alio core portfolio, if you want to start learning, you can swamp
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  out sectors or industries or strategies rather than try to pick individual securities, which
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  is a fool's Errand if you don't have any experience in the markets, it's
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  basically tant them out to go into Las Vegas. You can learn, and
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  that's how I learned by starting with sectors. Then once you can identify sectors
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  and which way markets a movement, then you can get into individual securities within
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  those sectors. Okay, all right, I'm intrigued by it. I have
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  to tell you. And so how do we find out more about this?
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  How do we connect? How do we get on board? Well, you
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  can download in the app store on the iOS store or Android, Google Play,
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  or you can go to Alio finance dot com and just learn more,
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  learn more about the team, and learn more about a philosophy. All right,
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  Well, like I say, I am intrigued by it, really intrigued.
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  I think got amazing potential. Kind of been looking for something like this
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  myself. Maybe I will go open an account and see where it takes me.
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  Hey, if you've got a question about Alio, you can always send
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  me an email. We'll get you an answer quickly from Joseph. It's kl
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  Atcarrelets dot com. And you'll find all the links to the various Alio social
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  media website, etc. On Financial Survival Network dot com in the show notes
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  this interview, and while you're there, sign up for your free newsletter.
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  Hey, Jess, really intriguing. We're going to check this thing out.
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  We're going to have you back on the show talk about my experiences. Sounds
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  good. Thanks for having me carry, Thanks for listening to Carrie Lets's Financial
• 9:52
  Survival Network, your solution to today's trying times. For the latest, go
• 9:58
  to Financial Survival Network dot com. Financial Survival Network now more than ever