Saturday, December 15, 2018

Fear Seizes The Algo Trading Machines

All the main indicators of economic activity are telling us about an economy that is all right and full employment and fat profits and dividends. Yet NASDAQ is falling evermore. What is that? I think that the crossing of the long term and short term interest rates in the USA, which has apparently predictive power, has convinced the statistical machines that recession is coming in six months. So they are discharging shares. Since the algo machines are the most active participants in the market, they impose their mood on everybody.

Should I join the robots and follow their direction? I don't know. 

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