Wars and viruses: Are robots less prone to market panic?

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Widely blamed for volatile 'flash crashes' in currencies and equities,...

LONDON - Widely blamed for volatile “flash crashes” in currencies and equities, high-frequency algorithms may also be why shock global events, including the current coronavirus, seem to have lost their power to spook markets for any length of time.

Now even as China’s coronavirus threatens to throttle economic growth, global stocks are not far off all-time highs. But they also offer the advantage of being able to transact at lightening speed at any hour of the day or night, with razor-sharp accuracy and lower overall costs. Being machines, they are also alien to the common human impulses of fear and greed that tend to take over.

One currency trader familiar with algo use said a machine reading coronavirus cases would typically buy stocks if informed of “500 new cases, 10 deaths”. “If it’s ‘3000 new cases, 200 deaths’ they might sell. A plausible comparison may be the 0.6% plunge in the S&P 500 within the space of half an hour on Jan. 29. The move came after American Airlines and Lufthansa said they were suspending their China flights, but an hour later, the losses had been recouped.

 

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Моя идея фильма: блокбастер, боевик, детектив, мистика, триллер, фентези, драма, ужастик, приключения о вспышке коронавирус в городеУхань(Китай). О героических старания и труде китайских врачей ,медсестер, ученых, биологов при борьбе с вирусом 2019-nCoV.

Nothing to do with robots, everything to do with way too much free money printed by the Fed. The economy could be tanking and stocks would still not go down. There's nothing to do with this capital to give you a decent ROI.

Yep they are less prone.. while Robert will over come... will definitely be launched over a weak customer

apparently not as Brent looking to end January with one of its worst performances since May.

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