In order to answer some of these questions and really get to the bottom of this “bubble” phenomenon, we decided we’re going to do a little experiment in the office.
Indiana professor Arlington Williams seemed to have a good understanding of what truly makes a bubble, so we thought we would recreate an experiment of his. In his experiment, Professor Williams created a simple stock market for some of his college students.
This time, we’ll create a similar stock market for the people in the Betterment office.
Will our Betterment employees be able to stay smart, or will they fall into the same pattern as millions of Americans and offer more than a stock is worth, only to see that price fall… hard?
We’ll let you know on Wednesday, once we’re done. Every experiment needs a hypothesis, so tweet us (@betterment) and let us know yours!
This article and experiment were devised by our very own Sarah Brock. Sarah is one of the three excellent interns we’ve had at Betterment over the summer. Tune in for Part 2 later this week.
Betterment is the largest independent robo-advisor, helping people to better manage, protect, and grow their wealth through smarter technology. With more than 175,000
customers and over $5 billion
in assets under management, the service offers a globally diversified portfolio of ETFs, designed to help provide you with the best possible expected returns for retirement planning, building wealth, and other savings goals. Betterment also helps customers get on track for a comfortable retirement with RetireGuide™, a retirement planning tool that lets people know how much they should save and if they are investing correctly.
Betterment is a CNBC Disruptor 50 and Webby award winner, and it has been featured in the New York Times, Forbes, and the Wall Street Journal. Betterment helps people to achieve a smarter financial future with minimal effort and for a fraction of the cost of traditional financial services. Learn more here.