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FutureAdvisor CEO: Stick With Value Stocks In Face of Volatility

Worried investors should think about their long term goals and stick with their stock allocations despite the market's recent choppiness, said Bo Lu, CEO of FutureAdvisor.

Worried investors should think about their long term goals and stick with their stock allocations despite the market's recent choppiness, said Bo Lu, CEO of FutureAdvisor. Lu added that he is a fan of low-cost index funds because historically it has been hard and expensive for active managers to beat the market. He said he favors value stocks because multiples have become inflated since the 2008 financial crisis. Finally, Lu recommends investors avoid increasingly popular liquid alternative mutual funds because there is not enough evidence that they can outperform the indexes.

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