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00:00AND CONSUMERS WAITING TO SEE IF PRICES WILL COME DOWN AND RECESSION WILL BE AVOIDED. I AM JOINED BY BETTERMENT CEO SARAH LEVY. I KNOW A LOT OF YOUR CUSTOMERS ARE AFFLUENT MILLENNIALS THAT HAVE A BIT OF MONEY IN THE BANK, SOME ASSETS TO MOVE AROUND. HOW ARE YOU ADVISING THEM AT THIS TIME? SARAH: IT IS INTERESTING BECAUSE PHILOSOPHICALLY WE HAVE ALWAYS BELIEVED IN LONG-TERM DIVERSIFICATION. ATTRACT A CLIENT BASE THAT BELIEVES IN THAT PHILOSOPHY AND STAYS THE HORSE. IN GENERAL, OUR ADVICE IS STAY THE COURSE. IN SOME WAYS, WE DO OUR BEST IN THIS SORT OF ECONOMY AND THIS SORT OF VOLATILE MARKET. TEXT MARK IS ONE OF THE BENEFITS WE OFFER. EMILY: WHAT COMPARISONS DO YOU SEE BETWEEN THE DOWNTURN WHEN YOU WERE FOUNDED AND NOW TO MARK SARAH: SOME WOULD SAY " BETTER TO BE LUCKY THAN SMART. " WHEN WE LAUNCHED, IT WAS A DOWNTURN. WE WERE ABLE TO MOVE QUICKLY. YOUR LAST SEGMENT WAS ON ENTERING THE CRYPTO MARKET, AND I THINK THERE IS A SIMILAR ENERGY AND WHERE WE ARE IN THE CRYPTO SPACE RELATIVE TO WHERE WE WERE IN THE OVERALL MARKET A DECADE AGO, WHEN WE WERE FOUNDED. EMILY: I KNOW YOU ARE WORKING ON A CRYPTO PRODUCT FOR LAUNCH LATER THIS YEAR. WHAT IS YOUR TAKE ON THE BROADER CRYPTO VOLATILITY AND BITCOIN AT NEW LOWS? SARAH: OUR VIEW IS THAT CRYPTO CONTINUES TO BE AN ASSET CLASS FOR THE LONG-TERM, AND WE THINK ABOUT IT AS A WHOLE INSTEAD OF THE INDIVIDUAL STORIES. BITCOIN OR THE REST OF THE POINTS COMING UP BEHIND, OUR VIEW IS LONG-TERM DIVERSIFICATION IN TRADITIONAL FINANCE AND SIMILARLY IN, AND FROM AN ADVISORY STANDPOINT, WE BELIEVE THIS IS NOT AN ALL OR NOTHING IDEA. WE ADVISE OUR CLIENTS TO USE CRYPTO AS A DIVERSIFICATION PLAY. EMILY: SAM BATEMAN FREE IS INTERESTED IN BUYING ROBINHOOD. HOW DOES THAT CHANGE THE GAME? SARAH: PARTICULARLY IN 2021, SELF-DIRECTED TRADING GOT A LOT OF EXCITEMENT, AND SOME COMBINATION OF CRYPTO AND OPTIONS AND SINGLE STOCKS -- FOLKS THOUGHT THEY WERE SMARTER AND MORE INFORMED, AND THEY COULD PLAY THE MARKET IN A SELF-DIRECTED WAY. I THINK THAT OFTEN ENDS BADLY. IN THAT MARKET, WE WERE PREACHING " EAT YOUR VEGETABLES " WHILE THEY WERE PREACHING " HERE IS A PIECE OF CAKE. " ON THE OTHERS, -- THE OTHER SIDE, WE ARE LOOKING GOOD IN AN ADVISORY CAPACITY. EMILY: IS A RECESSION INEVITABLE IN YOUR VIEW, AND IF SO, WHEN DOES IT HAPPEN? SARAH: I DO NOT LIKE TO PROGNOSTICATE ON THAT. I THINK THE MONETARY POLICY RIGHT NOW THAT THE GOVERNMENT IS PUTTING FORTH IS IMPORTANT TO CONTROL INFLATION AND I THINK THAT IS THE NUMBER ONE OBJECT. THREADING THE NEEDLE IS REALLY THE KEY. WHETHER OR NOT THAT NEEDLE IS GOING TO BE THREAD BETWEEN EMPLOYMENT AND INFLATION AND INTEREST RATES IS REALLY GOING TO DICTATE WHAT HAPPENS IN THE MARKETS. EMILY: HOW DO YOU THREAD THE NEEDLE IN PORTFOLIOS? HOW DO YOU INVEST FOR EITHER SCENARIO IS TO MARK SARAH: THINK TRYING NOT TO OVERREACT. FOR EXAMPLE, BEHAVIORALLY, DO NOT NUDGE CUSTOMERS TO MAKE TOO MANY MOVES. WHEN WE THINK OF THE SAVINGS RATE ENVIRONMENT RIGHT NOW AND THAT GOING UP, ONE OF THE THINGS WE ARE GOING TO DO IS RECOMMEND CASH IN PEOPLE ' S PORTFOLIOS. BUT THESE ARE ARE GOING TO BE MODEST CHANGES AT THE MARGIN. ON AVERAGE, OVER TIME -- THAT AVERAGING MAKES SENSE. TAKING ADVANTAGE OF TAX TOOLS THAT ARE AVAILABLE.

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Fintech Investing Trends with Betterment CEO

Betterment CEO Sarah Levy joins Emily Chang to give her take on the fintech trends to watch out for, how her company is helping investors make sense of the downturn, and her thoughts on the crypto market meltdown. (Source: Bloomberg)

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