A single basket with all your eggs?

Posted by Avinash Shenoy on Mon, Mar 2, 2020

Boy, talk about a huge rally today! Largest come back of all time.. Seems like something close to 3% of today’s rally in the SP500 index came from a large rally in the last hour of trading. That’s big and it probably put a smile on many faces after they looked at their portfolio and 401k accounts. That was a welcome change after 1 week of brutal 3% and 4% down days leading to a in SP500 ending week on an official correction.

And while today was a happy day for some, for other who hold brokerage trading accounts with Robinhood, it was anything but happy. I being one of these poor chaps. You see, Robinhood suffered one of their worst outages ever that I can recall. A system wide outage and one that lasted a the whole trade day and beyond. If you wanted to do anything with your portfolio account but were with Robinhood, there was nothing you could do today. Taking a look at the posted system status for Robinhood platform, you would have be hard pressed to find a single useful part of the platform that was functioning.

There is an old saying that goes “don’t put all your eggs in one basket”. For those investors whose one basket was Robinhood, today this old adage was loud and clear in its meaning. For me, this is giving me another reason on top of others including the Lot selection feature (lack there off) to explore other brokerage options. Robinhood was and in some ways still a good option for many beginner investors. But the more you start using it, the more cracks becomes visible of missing functionality.

Today’s is a simple reminder to us all. Just like the old adage of investing that says Diversity your portfolio, it may very well be in our best interest to diversify our brokerage firms. Hope you all find a replacement basket to put some of your future eggs.